Electricity generation companies (GenCos) have denied any knowledge of a reported N4 trillion debt refinancing plan purportedly approved by the Federal Government to clear legacy obligations in Nigeria’s power sector.

The alleged plan, which circulated widely on social media platform X, claimed the government intended to restructure and settle debts owed to 27 GenCos for electricity supplied between 2015 and 2023. The post suggested the intervention would involve bonds, treasury instruments, and phased cash payments, aiming to restore liquidity in the power value chain, improve generation capacity, and boost investor confidence.

The social media message stated, “Debts estimated at N4tn, accumulated from unpaid invoices by the Nigeria Bulk Electricity Trading Company, created a chain reaction of withheld gas supply, reduced generation capacity, and poor distribution performance. Under the refinancing plan, the government will restructure and settle verified debts… enabling GenCos to pay gas suppliers promptly, maintain plants, and expand generation capacity.”

However, the Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, told The Guardian on Tuesday that the GenCos had not been consulted or briefed on any such plan.

“From whom, please? We have not been engaged officially,” Ogaji said. She further questioned the mechanics of the alleged arrangement, asking, “Ask them two critical questions. When? How much cash and what are regulated instruments?”

Ogaji noted that debts in the sector continue to accumulate monthly, while the Federal Government has yet to take tangible steps to address the arrears. “Mere pronouncements cannot pay debts,” she warned, adding that the ongoing liquidity squeeze remains a major concern for generation companies.

She disclosed that in a recent meeting, President Bola Tinubu had asked for time to verify the debt claims before any payments could be made. Despite this assurance, Ogaji expressed concern that gas suppliers were already scaling back supplies to power plants due to unpaid dues, a development she said could further undermine generation capacity.

The episode highlights the fragility of Nigeria’s electricity market, where unresolved legacy debts, inconsistent liquidity, and delayed interventions continue to hinder investments, reduce supply stability, and erode confidence among critical stakeholders in the power sector.