₦airaland Forum

Putindbutt:
Anyone who thinks there's shortage of gas in Nigeria, that person must be less than 7years old.

The same cycle we were in when we were paying fuel marketers for oil subsidy. These guys would collect subsidy for inflated quantities of fuel, many times, they collected money for bringing in no fuel at all. A former EFCC Chairman, Bawaa wrote a book on the subsidy fraud.

Interestingly, whenever the oil marketers wanted to arm twist the Government over outstanding payments, they quickly hoard fuel in their storage and make Nigerians suffer to hustle for fuel at exorbitant prices, mostly from the black market. The queues became longer day after day until Government approved their payments.

As soon as Govt stopped paying subsidy, I can't remember the last time Nigerians were on queue at any filling station.

We have so much abused subsidy privilege in Nigeria do much that it has become a fraudulent practice by both parties.

I can't understand how someone would argue against an independent audit. These guys think collecting subsidy from Government is the fastest route to become an overnight billionaire in Nigeria. I bet when Govt stopped paying subsidy on electricity entirely, their brains will reset.

This is the result of incompetent privatization of NEPA whereby public assets were sold to political friends and cronies.

SmartPolician:
Why is Tinubu stashing away lots of Nigerian money in foreign reserves, while the entire country is in darkness? Why not pay them from that reserve? How can Tinubu hate this country this much?

forgiveness:
How can Government be paying for darkness? It's high time subsidy is removed and electricity is regulated to serve the interest of the populace.

What we currently have in the power sector is manipulation and extortion by these so called power generating companies.

They are the major problem of the epilepsy power supply in Nigeria.


Baba na you dey believe say subsidy dey Electricity

Just imagine paying estimated bills for darkness. That's total day light robbery.

maik:
Ask Jonathan to explain the debt. PDP caused the problem, Buhari carry over the problem and handed over everything to Tinubu.

OredoPikin2:
The subsidy has been removed na
Is that not why u have various bands
What are they removing again
The govt is just incompetent

SmartPolician:
Why is Tinubu stashing away lots of Nigerian money in foreign reserves, while the entire country is in darkness? Why not pay them from that reserve? How can Tinubu hate this country this much?

Seyitosino:
Not exactly, I guess they're trying to verify the actual amount owed. This has nothing to do with foreign reserve. The money OBJ threw at the problem was looted. Same with PMB. The records are there to prove that throwing money at a problem in Nigeria will worsen it, there's a cabal in the sector.

adenigga:
The Federal Government and power generation companies have disagreed over the reconciliation of debts in Nigeria’s electricity market, with both sides offering differing accounts of the actual liabilities owed to the GenCos.

The Minister of Power, Adebayo Adelabu, said the actual debt owed to generation companies may be significantly lower than widely reported, as ongoing reconciliation efforts continue to clarify obligations within the sector. He said the government’s liabilities to generating companies could settle at about N4tn, rather than the N6.3tn figure often cited in industry discussions.

Adelabu made this known during a recent question-and-answer session at a press conference in Abuja, where he also apologised to Nigerians for the persistent power outages across the country.

“You asked how much we owe suppliers. I can tell you that the amount we owe GenCos is estimated and is still being reconciled,” the minister said. “When we said N4tn as at the end of 2024, it was audited and agreed at about N2.8tn because of the interest elements and the foreign exchange components embedded in it.

“A number of the GenCos have agreed, while some are still discussing back and forth. But now that we are talking about N6tn for the generating companies, by the time reconciliation is concluded, it will probably be around N4tn total.”

He further explained that a large portion of the obligations relates to gas supply, which underpins electricity generation in the country. “What I can tell you is that a proportion of this, which is not less than 60 per cent, is being owed to gas suppliers. So I hope that is clear,” Adelabu added.

However, power generation companies faulted the government’s position, insisting that the reconciliation process must involve all stakeholders and reflect agreed figures.

Responding to the minister’s comments, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, called for more clarity on how the figures were derived, while reaffirming the need for a comprehensive reconciliation involving all parties.

She insisted that the last reconciliation meeting between all parties was in March 2025. “We are talking about a bilateral agreement, which means reconciliation of figures should be done by all parties,” Ogaji said in a chat with our correspondent on Friday.

“We want the government to publish how they arrived at their figures and what components formed them. The last time all parties had a reconciliation meeting was in March 2025. So it is important to confirm when another reconciliation was done.”

She noted that discussions with generation companies indicated that no subsequent reconciliation had taken place after the March meeting, stressing that accurate figures could only emerge through a joint verification process. “I spoke with the GenCos, and they confirmed that after the March reconciliation, no other reconciliation has been done. So how did the government get its figures from?” she asked.

Ogaji also questioned the reliance on the Nigerian Bulk Electricity Trading Plc as a sole source of data. “How can NBET be the only source? Invoice settlement is done by market operations; NBET only pays. The true figures can only emerge after a proper reconciliation. What are we turning the sector into?” she asked.

She explained that GenCos’ claims are based on contractual agreements and include multiple cost components often overlooked in public discourse. According to her, the outstanding liabilities cover unpaid invoices for electricity generated since 2015, capacity payments, deemed capacity, foreign exchange differentials, and supplementary charges arising from frequent plant start-ups and shutdowns.

Other components include interest on outstanding payments pegged at NIBOR plus four per cent, Value Added Tax on gas supplied between 2013 and 2021, and losses incurred due to low plant utilisation caused by gas shortages and transmission constraints.


“The GenCos supply power via a PPA with all the terms as approved by GENCOS contract; the outstanding falls into different categories – unpaid invoices for power generated and consumed from 2015 till date – capacities made available and tested by NBET annually – deemed capacity – difference between declared and actual – forex differentials – supplementary charges associated with start-ups and shutdowns, which have moved from 20 per annum to over 365 times a year – interest on outstanding, NIBOR plus 4 – VAT on gas from 2013 till Sept 2021 when it was stopped.”

She further noted that generation companies also incur costs from providing ancillary services such as spinning reserve and black start capabilities, as well as operating in Free Governor Mode, conditions that impose additional wear on equipment without corresponding compensation.

“Quantification of losses from low plant utilisation and stranded capacity; because of problems with gas supply and transmission evacuation, the generating plant is being run significantly below its design utilisation.

“In turn, this incurs additional costs which are not covered by tariffs nor by the draft PPAs; quantification of tariff for ancillary services; the generating plant is being used to provide a range of ancillary services (spinning reserve, black start, etc.), which carry significant costs but for which no tariff exists nor provision in the market rules and draft PPAs; quantification of tariff for FGMO; the system operator has instructed each generator to run their plant in Free Governor Mode of Operation, which is outside the design parameters of the equipment and leads to excessive wear and maintenance which is presently not compensated.”

The disagreement comes amid broader efforts by the Federal Government to sanitise the electricity market and address longstanding liquidity challenges that have affected the sector.

It also follows an earlier report that President Bola Tinubu approved N2.8tn as the verified portion of legacy debts owed to generation companies, based on an audit of subsidy obligations accumulated since 2010.

A senior government official familiar with the development said the approved amount reflects what has been duly validated, noting that further discussions are ongoing to reconcile outstanding claims.

“The audit has shown that N2.8tn is the verified liability, and that has been approved. The reconciliation process will continue to address other components of the claims,” the source said.

The disagreement signals a looming showdown between operators and the Federal Government over the audit and settlement of legacy debts and subsidy shortfalls in the power sector, but also presents an opportunity to establish clearer financial records, improve transparency, and restore investor confidence in Nigeria’s power sector.

While discrepancies in figures are not unusual in a transitioning market, sustained engagement between the government and operators will be critical to achieving long-term stability and improved electricity supply.

Despite ongoing reforms, the sector continues to grapple with legacy debts, tariff shortfalls, and market inefficiencies, issues that have limited investment and hindered stable power supply across the country.

Source: https://punchng.com/fg-gencos-disagree-over-electricity-debt-reconciliation

forgiveness:
How can Government be paying for darkness? It's high time subsidy is removed and electricity is regulated to serve the interest of the populace.

What we currently have in the power sector is manipulation and extortion by these so called power generating companies.

They are the major problem of the epilepsy power supply in Nigeria.

Just imagine paying estimated bills for darkness. That's total day light robbery.

BalogunIdowu:
Our leaders have continually failed this nation by making key livelihood thing dependant on private... they'll be judged accordingly!

DeclanR:
Adelabu penkelems, the worst minister of power since the creation of Nigeria.

But guys, I would like to ask, how did Adelabu become the power minister when he has no knowledge about Power?
Was he not the deputy governor of CBN when governor Charles solido was in charge of CBN?
The power ministry needs a sound Engineer, and not an accountant, banker or economist like adelabu.
Square pegs in round hole .

The good thing is, He only has just two days to resign since he's contesting the governorship in Oyo.

Pootle:
sha no put your battery for your living area, them say the battery dey emit toxic substance. but one thing go kii man laslas

adenigga:
The Federal Government and power generation companies have disagreed over the reconciliation of debts in Nigeria’s electricity market, with both sides offering differing accounts of the actual liabilities owed to the GenCos.

The Minister of Power, Adebayo Adelabu, said the actual debt owed to generation companies may be significantly lower than widely reported, as ongoing reconciliation efforts continue to clarify obligations within the sector. He said the government’s liabilities to generating companies could settle at about N4tn, rather than the N6.3tn figure often cited in industry discussions.

Adelabu made this known during a recent question-and-answer session at a press conference in Abuja, where he also apologised to Nigerians for the persistent power outages across the country.

“You asked how much we owe suppliers. I can tell you that the amount we owe GenCos is estimated and is still being reconciled,” the minister said. “When we said N4tn as at the end of 2024, it was audited and agreed at about N2.8tn because of the interest elements and the foreign exchange components embedded in it.

“A number of the GenCos have agreed, while some are still discussing back and forth. But now that we are talking about N6tn for the generating companies, by the time reconciliation is concluded, it will probably be around N4tn total.”

He further explained that a large portion of the obligations relates to gas supply, which underpins electricity generation in the country. “What I can tell you is that a proportion of this, which is not less than 60 per cent, is being owed to gas suppliers. So I hope that is clear,” Adelabu added.

However, power generation companies faulted the government’s position, insisting that the reconciliation process must involve all stakeholders and reflect agreed figures.

Responding to the minister’s comments, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, called for more clarity on how the figures were derived, while reaffirming the need for a comprehensive reconciliation involving all parties.

She insisted that the last reconciliation meeting between all parties was in March 2025. “We are talking about a bilateral agreement, which means reconciliation of figures should be done by all parties,” Ogaji said in a chat with our correspondent on Friday.

“We want the government to publish how they arrived at their figures and what components formed them. The last time all parties had a reconciliation meeting was in March 2025. So it is important to confirm when another reconciliation was done.”

She noted that discussions with generation companies indicated that no subsequent reconciliation had taken place after the March meeting, stressing that accurate figures could only emerge through a joint verification process. “I spoke with the GenCos, and they confirmed that after the March reconciliation, no other reconciliation has been done. So how did the government get its figures from?” she asked.

Ogaji also questioned the reliance on the Nigerian Bulk Electricity Trading Plc as a sole source of data. “How can NBET be the only source? Invoice settlement is done by market operations; NBET only pays. The true figures can only emerge after a proper reconciliation. What are we turning the sector into?” she asked.

She explained that GenCos’ claims are based on contractual agreements and include multiple cost components often overlooked in public discourse. According to her, the outstanding liabilities cover unpaid invoices for electricity generated since 2015, capacity payments, deemed capacity, foreign exchange differentials, and supplementary charges arising from frequent plant start-ups and shutdowns.

Other components include interest on outstanding payments pegged at NIBOR plus four per cent, Value Added Tax on gas supplied between 2013 and 2021, and losses incurred due to low plant utilisation caused by gas shortages and transmission constraints.


“The GenCos supply power via a PPA with all the terms as approved by GENCOS contract; the outstanding falls into different categories – unpaid invoices for power generated and consumed from 2015 till date – capacities made available and tested by NBET annually – deemed capacity – difference between declared and actual – forex differentials – supplementary charges associated with start-ups and shutdowns, which have moved from 20 per annum to over 365 times a year – interest on outstanding, NIBOR plus 4 – VAT on gas from 2013 till Sept 2021 when it was stopped.”

She further noted that generation companies also incur costs from providing ancillary services such as spinning reserve and black start capabilities, as well as operating in Free Governor Mode, conditions that impose additional wear on equipment without corresponding compensation.

“Quantification of losses from low plant utilisation and stranded capacity; because of problems with gas supply and transmission evacuation, the generating plant is being run significantly below its design utilisation.

“In turn, this incurs additional costs which are not covered by tariffs nor by the draft PPAs; quantification of tariff for ancillary services; the generating plant is being used to provide a range of ancillary services (spinning reserve, black start, etc.), which carry significant costs but for which no tariff exists nor provision in the market rules and draft PPAs; quantification of tariff for FGMO; the system operator has instructed each generator to run their plant in Free Governor Mode of Operation, which is outside the design parameters of the equipment and leads to excessive wear and maintenance which is presently not compensated.”

The disagreement comes amid broader efforts by the Federal Government to sanitise the electricity market and address longstanding liquidity challenges that have affected the sector.

It also follows an earlier report that President Bola Tinubu approved N2.8tn as the verified portion of legacy debts owed to generation companies, based on an audit of subsidy obligations accumulated since 2010.

A senior government official familiar with the development said the approved amount reflects what has been duly validated, noting that further discussions are ongoing to reconcile outstanding claims.

“The audit has shown that N2.8tn is the verified liability, and that has been approved. The reconciliation process will continue to address other components of the claims,” the source said.

The disagreement signals a looming showdown between operators and the Federal Government over the audit and settlement of legacy debts and subsidy shortfalls in the power sector, but also presents an opportunity to establish clearer financial records, improve transparency, and restore investor confidence in Nigeria’s power sector.

While discrepancies in figures are not unusual in a transitioning market, sustained engagement between the government and operators will be critical to achieving long-term stability and improved electricity supply.

Despite ongoing reforms, the sector continues to grapple with legacy debts, tariff shortfalls, and market inefficiencies, issues that have limited investment and hindered stable power supply across the country.

Source: https://punchng.com/fg-gencos-disagree-over-electricity-debt-reconciliation

forgiveness:
How can Government be paying for darkness? It's high time subsidy is removed and electricity is regulated to serve the interest of the populace.

What we currently have in the power sector is manipulation and extortion by these so called power generating companies.

They are the major problem of the epilepsy power supply in Nigeria.

Reason why the rich are moving towards the solar means of electricity generation. The president understands the complication involved in this entire chaon of power generation. This is the reason why he quickly opted for solar electricity for aso rock, leaving the entire country to deal with the headache of this back and forth.

Federal Government should totally dissociate itself from this sector and allow the states deal with this issues on their own. Better still, allow the states also come into the picture so the burden is reduced.

Just imagine paying estimated bills for darkness. That's total day light robbery.

DeclanR:
Adelabu penkelems, the worst minister of power since the creation of Nigeria.

But guys, I would like to ask, how did Adelabu become the power minister when he has no knowledge about Power?
Was he not the deputy governor of CBN when governor Charles solido was in charge of CBN?
The power ministry needs a sound Engineer, and not an accountant, banker or economist like adelabu.
Square pegs in round hole .

The good thing is, He only has just two days to resign since he's contesting the governorship in Oyo.

jamafa:
Subsidy not removed on power

osayuwamwen:
na them know I don go solar

osayuwamwen:
na lithium battery I they use

forgiveness:
How can Government be paying for darkness? It's high time subsidy is removed and electricity is regulated to serve the interest of the populace.

What we currently have in the power sector is manipulation and extortion by these so called power generating companies.

They are the major problem of the epilepsy power supply in Nigeria.

Just imagine paying estimated bills for darkness. That's total day light robbery.