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Power Generation Companies Refute Claims of Debt Reduction by Tinubu Administration
The Association of Power Generation Companies (APGC) has firmly denied recent media reports alleging that President Bola Tinubu’s administration has slashed the Federal Government’s outstanding legacy debt to power generation companies from ₦6.5 trillion to ₦2.8 trillion. These claims, according to APGC, are unfounded and misleading.
APGC’s Official Response to Debt Reduction Allegations
In a statement issued on Monday, Dr. Joy Ogaji, CEO of APGC, categorically rejected the assertions, emphasizing that no formal notification or agreement has been communicated to GenCos regarding any such debt reduction or final settlement. She described the reports as “fake news” and urged the Presidency to disclose any audit results or documentation that substantiate the purported decrease.
Understanding the Basis of the ₦6.5 Trillion Debt
Dr. Ogaji clarified that the ₦6.5 trillion figure is grounded in verifiable data derived from actual electricity generation and supply metrics. Power output by generation companies is meticulously metered, recorded, and invoiced in accordance with established market protocols and bilateral contracts. This systematic approach ensures transparency and accuracy in accounting for the sector’s financial obligations.
Call for Transparency and Detailed Disclosure
The APGC CEO urged government officials to provide comprehensive evidence supporting any claims of debt adjustment. She highlighted that any insinuation of inflated or arbitrarily calculated debt amounts reflects a fundamental misunderstanding of the sector’s financial dynamics, which have evolved over years of operational activity.
Context: Ongoing Sector Challenges and Labour Disputes
This clarification emerges amid heightened tensions between power generation companies and the Nigeria Labour Congress concerning unsettled debts within the power sector. The ongoing financial disputes have exacerbated nationwide electricity supply issues, underscoring the critical need for transparent and accurate financial management in Nigeria’s energy industry.
Looking Ahead: The Importance of Accurate Debt Management
As Nigeria continues to grapple with power supply challenges, clear communication and verified financial reporting remain essential. Accurate debt reconciliation not only fosters trust among stakeholders but also supports efforts to stabilize and improve the country’s electricity infrastructure. The APGC’s insistence on factual reporting highlights the sector’s commitment to accountability and sustainable development.
