•We are already settling the debts amounting N4trn – FG•It’s N7trn, no payment has happened – GENCOs

By Ediri Ejoh

The Federal Government has said it is offsetting the power sector’s debt, which it said has risen to about N4 trillion.

This came as the Generation Companies, GENCOs, fault the claims, insisting that the sector has incurred over N7 trillion debt on its government services.

Speaking at the Nigerian-British Chamber of Commerce Energy Day 2026, held in Lagos, Special Adviser to the President on Oil and Gas, Mrs. Olu Verheijen, stated that Tinubu’s administration is restoring financial viability to the gas-to-power chain, adding that for years, the power sector was constrained by accumulated arrears, weak payment discipline and tariff distortions.

She said that the Presidential Power Sector Debt Reduction Programme was built to address the challenges directly.

According to her the Federal Executive Council approved a bond programme of up to N4 trillion to settle verified generation and gas-company arrears.

She stated: “Under it, generation companies have signed full and final settlement agreements worth about N2.28 trillion.

“The N501 billion Series 1 bond was issued and oversubscribed, with payments to generation and gas companies now underway.

“A second series of N729 billion will follow to complete the first phase,” adding that the fund was not a bailout but a strategic reset that cleared verified arrears, restored liquidity, and gave operators the footing to invest with confidence.

In a swift reaction, however, the GENCOs under the aegis of the Association of Power Generation Companies rejected the Federal Government’s reduction of the debt, insisting that the full amount remains outstanding and severe liquidity crisis currently affecting the industry is deeply concerning.

The Association’s Chief Executive Officer, Joy Ogaji said, “Today, Nigeria’s GENCOs are owed over N7trillion for electricity generated and supplied to the national grid, with a monthly payment shortfall of N200bn.

“This debt has accumulated over several years, 2015 -2026. Approximately ¦ 4 trillion represents legacy debt from 2015 to 2024, while the balance has continued to grow due to persistent market shortfalls.

“Despite making generation capacity available, GenCos receive only about 35% of their monthly invoices, making it extremely difficult to meet critical operational obligations, including payments to gas suppliers, equipment manufacturers, and maintenance contractors.

“Nigeria currently has an installed generation capacity of about 15,500 MW, with roughly 7,000 MW available for dispatch. However, due to transmission and distribution limitations, the grid typically accommodates between 3,000 and 4500 MW.

“Electricity generation companies (GenCos) are the foundation of the Nigerian Electricity Supply Industry (NESI). GenCos incur significant costs in gas procurement, operations and maintenance, staff costs, debt servicing, regulatory compliance, and capital expenditure.

“Despite generating electricity and issuing invoices through the market, a substantial portion of their invoices remains unpaid, leading to growing receivables and liquidity challenges.”

On the nature of the indebtedness, she stated that “Government indebtedness arises primarily from: historical market shortfalls, inadequate remittances across the electricity value chain and subsidy-related obligations.”

By Efe Onodjae

Nigeria and four other West African countries, Côte d’Ivoire, Ghana, Togo, and Benin Republic, have formally launched the Abidjan–Lagos Corridor Management Authority, a regional body established to oversee the development and future operation of the $16 billion coastal highway project linking major economic hubs across the region.

The authority will coordinate the management and operation of the planned 1,028-kilometre, six-lane expressway, which is expected to become one of West Africa’s most significant transport corridors when it becomes operational, projected for 2030.

Officials say the initiative is designed to improve cross-border transport efficiency, reduce logistics costs, and strengthen regional trade integration along the busy coastal economic axis.

The corridor is also projected to significantly expand commercial activity, with estimates suggesting it could generate around $16 billion in combined trade value across participating countries, alongside about $1.3 billion in toll revenues.

Alongside the highway project, participating governments are also exploring the future development of a parallel high-speed rail line to further enhance passenger and freight movement across the same corridor.

The project is part of broader regional efforts to deepen economic integration and improve infrastructure connectivity across West Africa, particularly along the densely populated and economically active coastal belt stretching from Abidjan to Lagos.

•As farmers, investors lack reliable information

By Cynthia Alo

A  new study by the Nigeria Agribusiness Data and Investment Hub (NADIH), an initiative of Lagos Business School in partnership with Augmentum Advisory, has revealed that although government institutions control about 70 percent of agricultural datasets in Nigeria, much of the information is outdated and inadequate for farmers, investors and policymakers.

The findings were unveiled in Lagos, during the formal launch of the Nigeria Agribusiness Data and Investment Forum with the theme, “Building Decision-Grade Agriculture Data Systems in Nigeria: From Fragmentation to Coordination.”

Presenting the findings, the research team said fragmentation across institutions has weakened Nigeria’s ability to generate quality information needed for investment and policy decisions.

The report identified inadequate funding and manpower as major constraints to data collection, accounting for 56 percent of the challenges faced by data providers.

“No single source can anchor ongoing sustainability. As such, blended models are a necessary opportunity to coordinate across key ecosystem players for efficient resource allocation,” the team said.

In her welcome address, Dean and Professor of Information Systems at Lagos Business School, Prof. Olayinka David-West, said poor data quality continues to undermine investment decisions across the agricultural value chain.

 “If somebody wants to invest in cassava and asks where to go and what infrastructure exists, we do not have those answers. Sometimes the data exists but it is already 10 years old,” she said.

However, reacting to the challenges outlined by the team, Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, said the country’s major problem is neither funding nor absence of data but the high level of informality within the food system.

Olusanya noted that many traders and market operators are reluctant to provide accurate information because they fear government interference and extortion.

“You can enter markets and collect names and phone numbers, but you may discover that more than half of the information given is incorrect because people are afraid of how the data will be used. People will only give accurate data when they see incentives and confidence in the system. Without that, we are simply on a wild goose chase,” she said.

She added, “We have politicised every sector. Even some people presented as farmers are political farmers. Many association leaders do not own farms, yet they head farmers’ groups because of the benefits attached to intervention programmes.”

Also speaking, a Director at the Federal Ministry of Livestock Development, Dr. Adeniji Adedeji, said the ministry is implementing a National Livestock Growth and Acceleration Strategy targeting growth of livestock’s GDP contribution to $74 billion over the next 10 years, with data and statistics as one of its core pillars.

He disclosed that the ministry recently developed a National Livestock Information Management System to warehouse and analyse livestock-related data for decision-making.

However, he noted that the ministry relies on data from state veterinary departments which has become increasingly unreliable, as disease surveillance officers across many states have retired without replacement.

He added that some state officials deliberately under-report data fearing it would reduce their share of federal allocations, while some development organisations collect data and take it out of the country without sharing with relevant authorities.

On his part, Statistician-General and Chief Executive Officer of the Kaduna State Bureau of Statistics, Dr. Baba Bukar, called for greater investment in sub-national data systems and wider adoption of technology tools such as satellite imagery and mobile data collection.

He said the value of such investment helped the state identify food insecurity hotspots in some of the local government areas, enabling the state government to direct resources based on evidence rather than political considerations.

Also speaking, Director-General of the Nigerian Agribusiness Group, Mr. Jafar Umar, said Nigeria has relied for too long on foreign-generated agricultural statistics, leaving investors without the reliable local information needed to make informed decisions.

He said the group is partnering with states to develop market-level transaction data that can support investment decisions and strengthen agricultural planning across the country.