Presidency Clarifies ₦3.3trn Settlement Plan Approved For GenCos By Tinubu

09 April 2026 | News

The Presidency has clarified concerns surrounding President Bola Tinubu’s approval of a ₦3.3 trillion plan to settle verified legacy debts owed to Power Generation Companies (GenCos) between February 2015 and March 2025.

The initiative, part of the Presidential Power Sector Financial Reforms Programme, is designed to stabilise Nigeria’s power grid and improve electricity supply. So far, ₦223 billion has been disbursed, with implementation already underway.

In a statement issued by presidential spokesman Bayo Onanuga, the government revealed that 15 power plants have signed settlement agreements worth about ₦2.3 trillion. However, the move has sparked controversy, as GenCos questioned how the ₦3.3 trillion figure was calculated, citing discrepancies with earlier reconciled records.

Responding to these concerns, the Presidency explained that the settlement followed a detailed verification process. Initially, total claims across the power sector stood at ₦4.7 trillion. After a presidential review and a fiscal cap of ₦4 trillion approved by the Federal Executive Council, the claims were reduced by 30 percent, resulting in the final ₦3.3 trillion figure based strictly on verified and contract-backed obligations.

The government emphasised that the programme is not a payout for unverified claims but a structured, market-driven effort to address longstanding financial challenges in the sector while protecting public interest.

To ensure sustainability, the repayment will be phased. The first series, valued at about ₦1.23 trillion, is already in progress, with ₦501 billion raised from the domestic capital market. In addition to the ₦223 billion already paid, another ₦197 billion is currently being processed, largely for gas-related debts.

As of March 31, 2026, 17 GenCos—covering multiple power plants—had signed agreements worth approximately ₦2.28 trillion, showing increasing participation across the sector.

The Presidency maintains that the reform programme aims to restore liquidity, improve reliability, and create a more sustainable and investable electricity market in Nigeria.