Eight GenCos Sign N3.3trn Bailout Deal

Eight of Nigeria’s largest power generation companies, including Transcorp Power, Egbin Power, and Geregu Power Plc, have signed onto President Bola Tinubu’s ₦3.3 trillion debt settlement programme, aimed at restoring liquidity to the electricity sector.

The deal covers 15 power plants operated by six private firms and two state-owned entities, marking the most ambitious attempt yet to clear unpaid obligations that have crippled investment and maintenance for nearly a decade.

Among the signatories are Egbin Power Plc, Nigeria’s largest generating station with 1,320MW capacity; Geregu Power Plc in Kogi State; and two Transcorp affiliates, Transcorp Delta in Ughelli and Afam Power in Rivers State.

Others include First Independent Power Limited, Mabon Limited, and public sector players like the Niger Delta Power Holding Company and Ibom Power Company.

However, Joy Ogaji, CEO of the Association of Power Generation Companies, questioned the government’s figures.

“We need to understand how this ₦3.3 trillion was computed. Does it represent GenCos’ invoices only? Does it cover 2015 to 2024? The questions are endless,” she said.

She explained that claims go beyond unpaid invoices, including capacity payments, forex differentials, supplementary charges from frequent plant shutdowns, and uncollected VAT on gas supplies. Some GenCos argue their liabilities exceed ₦7 trillion.

A senior government official said Tinubu rejected inflated claims, insisting on a defensible, audited liability.

“The settlement programme is designed to restore the sector, not to reward accumulated claims beyond verifiable service delivery,” the official noted, adding that disbursements will be tied to obligations such as paying gas suppliers and investing in plant rehabilitation.

Analysts warn that without transparency, the bailout may not resolve the sector’s liquidity crisis.

“There must be consistency in the figures being communicated,” said Ade Olaniyi, an independent power analyst.

Nigeria currently generates only 4,000–5,000MW for over 220 million people, far below comparable economies. Clearing the debt overhang is seen as essential to attract private investment and expand generation capacity.