Tinubu Approves ₦2.8tn for GenCos After Audit, Slashes ₦6tn Claim
By Favour Momodu
President Bola Ahmed Tinubu has approved the payment of ₦2.8 trillion to electricity generation companies (GenCos) as verified subsidy debt owed by the Federal Government, following the conclusion of a comprehensive tripartite audit that reviewed longstanding claims in the power sector.
The development comes after power generation companies submitted claims amounting to ₦6 trillion as unpaid electricity subsidies.
However, the audit process conducted by representatives of the Federal Government, GenCos, and independent auditors reduced the figure by more than half, certifying ₦2.8 trillion as the legitimate and verifiable debt.
According to presidency sources, the approved sum will be settled through the issuance of bonds rather than direct cash payments.
The structured settlement plan is expected to ease pressure on government finances while restoring liquidity to the struggling power sector.
Officials said the disbursement will be tied to strict conditions, including the settlement of outstanding gas supply obligations and commitments by generation companies to invest in critical infrastructure upgrades.
The move is aimed at strengthening grid stability, improving electricity supply nationwide, and preventing further accumulation of subsidy arrears.
Industry stakeholders have long argued that mounting debts in the sector have crippled operations, discouraged investment, and contributed to persistent power shortages across the country.
Generation companies, in particular, have cited liquidity constraints and unpaid invoices as major barriers to optimal performance.
The Federal Government maintains that the audit was necessary to ensure transparency and accountability before committing public funds.
By reducing the initial ₦6 trillion claim to ₦2.8 trillion, authorities say they have safeguarded public resources while still addressing legitimate obligations within the power value chain.
Energy analysts say the phased bond payment structure could provide breathing space for the sector if properly implemented, but stress that deeper structural reforms, cost-reflective tariffs, and improved market discipline remain essential for long-term sustainability.
The approval signals a renewed effort by the Tinubu administration to stabilise Nigeria’s electricity market and address legacy debts that have weighed heavily on the sector for years.
