Abuja, Nigeria – Power generation companies decried three months of non-payment under the Federal Government’s N501 billion Presidential Power Sector Debt Reduction Programme meant to settle N4 trillion legacy arrears for electricity supplied since 2015, despite five GenCos signing deals in January 2026.
Okay News reports APGC Executive Secretary Joy Ogaji confirming “no payment has been received” for First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited, and Niger Delta Power Holding—covering 14 plants with N827.16 billion negotiated value payable in four instalments.
December’s Series 1 Power Sector Bond—N300 billion capital market raise plus N201 billion allotments via NBET Finance Company Plc—achieved 100% subscription from pension funds, banks, and asset managers signaling reform confidence, yet disbursement stalls amid FX volatility, gas shortages, and rising costs crippling GenCos’ balance sheets.
Presidential Energy Adviser Olu Verheijen hailed the issuance as “decisive reset” combining debt clearance with financial and structural fixes to restore sustainability, but operators face maintenance halts and investment flight without cashflow relief.
Tariff shortfalls and market inefficiencies ballooned the N4tn obligation choking the entire value chain from generation to distribution; the holdup raises doubts on implementation speed despite verification of receivables through March 2025.
GenCos’ liquidity crunch threatens grid reliability as unpaid invoices accumulate, stalling infrastructure upgrades and discouraging FDI critical for Nigeria’s power deficit; stakeholders press for urgent fund release to unlock sector viability.
The snag underscores persistent execution gaps in ambitious reforms, jeopardizing Tinubu administration’s energy turnaround promises amid rising demand and economic stakes.
