The Association of Power Generation Companies has expressed concern over their exclusion from the Federal Government’s ongoing debt verification and reconciliation exercise, which aims to address the N4 trillion owed to generation companies in Nigeria’s electricity sector.

In a letter dated September 24, 2025, and signed by CEO Dr. Joy Ogaji, the APGC noted that the inter-ministerial committee tasked with reconciling the debts does not adequately reflect the role of the GenCos, who are the direct creditors and counterparties in the sector.

The letter, addressed to the Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, Mr. Johnson Akinnawo, responded to an earlier correspondence (Ref: NB/002574, September 17, 2025), in which NBET assured stakeholders that the Federal Government was fast-tracking a proposed bond issuance to ease liquidity challenges in the power industry.

While welcoming the government’s intervention, the GenCos emphasized that their active participation in the exercise is essential to ensure transparency, accuracy, and fairness in reconciling the substantial debts.

They specifically requested clarification on four points: their formal role in the reconciliation process, the procedure for submitting supporting documents and verifying figures, the timeline and key milestones for completion, and the cut-off month for debt verification.

“While we appreciate the Federal Government’s commitment and NBET’s assurance that efforts are being fast-tracked to address the liquidity challenges within the power sector, we respectfully seek clarification on Paragraph 4 of your letter, which referenced the constitution of an Inter-Ministerial Committee mandated to carry out further verification and reconciliation of the debts owed to the GenCos.

“Our concern is that this process, as currently constituted, appears to exclude the direct participation of the GenCos, who are the actual counterparties and creditors to the debt under consideration,” the letter read in part.

With the aim of achieving a comprehensive and accurate reconciliation that results in a mutually acceptable resolution, the GenCos requested clarity on their role in the ongoing process.

They also sought details on the mechanism for submitting supporting documents, verifying figures, and participating in discussions to determine the final verified debt amounts. Additionally, they requested the timeline and key milestones for the exercise, enabling them to plan operations effectively and align with the expected release of funds.

The power plant operators sought to know the cut-off month for the debt reconciliation to ensure they could prepare and submit accurate, up-to-date records for verification.

“As key stakeholders, we strongly believe that our inclusion in these engagements is crucial to ensuring transparency, accuracy, and speedy resolution of outstanding claims.

“We look forward to your prompt clarification and guidance on how GenCos can actively participate in this exercise in order to support the government’s commendable efforts towards restoring liquidity to the Nigerian Electricity Supply Industry,” the letter concluded.

On Wednesday, the GenCos voiced renewed concerns over the deteriorating state of the electricity sector, warning that without urgent, coordinated reforms by the Federal Government, the industry faces further decline with serious implications for economic growth, investor confidence, and national development.