KEY POINTS

• The Presidency clarified that the ₦3.3 trillion GenCos debt settlement approved by Tinubu is based on verified claims after a review of ₦4.7 trillion in total submissions.
• About ₦223 billion has already been paid, with 17 GenCos signing agreements worth roughly ₦2.28 trillion.
• Generation companies raised concerns over the calculation method, saying they were not fully consulted on the final debt figure.

The Presidency has clarified the approval of a ₦3.3 trillion settlement plan for debts owed to Power Generation Companies (GenCos), saying the initiative is part of broader reforms to stabilise Nigeria’s electricity sector.

In a statement by presidential spokesman Bayo Onanuga, the government explained that the repayment plan, approved by President Bola Ahmed Tinubu, covers verified legacy debts accumulated between 2015 and 2025.

The initiative, under the Presidential Power Sector Financial Reforms Programme, is designed to restore liquidity, strengthen the national grid, and improve electricity supply across the country. The Presidency confirmed that ₦223 billion has already been disbursed, while additional payments are being processed.

According to the Presidency, total claims across the electricity value chain initially stood at about ₦4.7 trillion. Following a stakeholder meeting in July 2025, a comprehensive verification exercise was ordered, leading to a reduction of the claims by 30 per cent.

The review resulted in a final negotiated settlement of ₦3.3 trillion, covering only validated and contract-backed obligations. The government said the payments would be implemented through a phased, market-based financing structure to avoid fiscal pressure.

Settlement agreements signed with GenCos

The Presidency disclosed that implementation of the repayment plan has already begun, with multiple generation companies signing settlement agreements.

As of January 2026, five GenCos covering 14 power plants had signed agreements valued at about ₦827 billion. By March 31, 2026, the number rose to 17 GenCos covering 17 power plants, with agreements worth approximately ₦2.28 trillion.

Officials also confirmed that ₦501 billion was raised from the domestic capital market for the first phase of the programme, with disbursements tied to verified claims and completed documentation.

The government said the settlement is being implemented alongside broader reforms, including targeted support for vulnerable households and tariff adjustments aimed at improving service delivery.

According to the Presidency, the programme is intended to restore liquidity, stabilise power generation, and reposition the sector for long-term sustainability.