Nigerian Power Firms Reject Government’s Offer to Forfeit Half of ₦5trn Debt

Posted 2025-11-24 13:25:13 · 203 Views

Power generation companies (GenCos) in Nigeria have rejected the Federal Government’s offer to pay only 50% of the N5 trillion debt owed to them.

The government wants them to take a “50% haircut”, meaning they must forfeit half of the money permanently.

The FG planned to pay N2.4 trillion and cancel the rest, using a new bond program.

But the GenCos say:

• The offer is unfair

• It goes against President Tinubu’s promise to pay them fully

• It will damage trust and worsen the electricity sector

• It will scare away investors

The GenCos instead suggested two alternatives:

1. FG pays N2.4 trillion now and pays the remaining balance later.

2. FG removes only 10% of interest charges, but pays for all actual power generated.

They were given only five days to accept the offer — and all of them rejected it.

Experts warn that if the debt isn’t properly settled:

• Power generation will drop

• Risk of system collapse will increase

• Nigeria will face more electricity shortages

• Investors will avoid the sector