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GENCOs reject FG’s offer to forfeit 50% of N5trn debt

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Power generation companies, GENCOs, have rejected contract offers from the Federal Government requiring them to accept 50 per cent of the total debt owed them for electricity supplied to the national grid.....TAP TO CONTINUE READING

Described as a 50 per cent “haircut”, the proposed contracts were sent out to each power generation company, with the exception of Azura Power West Africa.

The government proposed to pay the companies about N2.4 trillion or 49.9 per cent of the total debt.

Government debt to the GenCos rose to over N5 trillion at the end of June, with President Bola Tinubu agreeing to pay off the debt through bond issuance during a meeting with the companies in July.

Following the approval of the proposal by the Federal Executive Council, FEC, in August, top government officials met with the owners of the GenCos in early October, with the Special Adviser on Energy, Olu Verheijen announcing that an agreement had been reached with the companies on the debt repayment model.

In furtherance to this, the government on October 16, 2025, sent out two contract documents to the GenCos which, among other clauses, requested them to forfeit 50 per cent of the debt owed them as final payment.

Copies of the documents, sighted by Vanguard, titled “NBET deed of settlement” and “Deed of novation”, among other things, sort to transfer government debt from the Nigerian Bulk Electricity Trading Plc, NBET, to a new special purpose vehicle, named NBET Bond Finance Company Plc.

The contracts read: “GenCo, hereby, accepts the sum of (“Settlement Amount”) as the full and final settlement of the outstanding legacy Ddebt, including any interest thereon and any other claim for losses, whether present or future and whether known or unknown, in respect of the legacy debt.

“For the avoidance of doubt, GenCo agrees that the settlement amount, as a compromise of its rights to the legacy debt, hereby (i.e., from the date of this Agreement), extinguishes its right to any claims to the legacy debt, including any contractual claims for losses whatsoever and howsoever, arising whether from deemed capacity, true ups and interest on delayed payment of substantive invoice amounts, true-up compensations or deemed capacity payments referenced in Appendix A or elsewhere.

“The parties agree that subject to prompt payment of the settlement amount as contemplated in the payment structure under Clause 3 below and Appendix B, the settlement amount shall not bear any interest or give rise to any further claims for any losses whatsoever.

“NBET’s obligation to pay the settlement amount to GenCo shall be novated to Bond SPV, via the Novation Agreement and upon its execution, Bond SPV shall be solely responsible for payment of the settlement amount.

“The parties acknowledge and are aligned on the PPSFRP’s plan for the settlement amount to be paid by Bond SPV solely from the outcome of an FGN-backed public bond issuance programme that will be conducted by the Bond SPV (“Bond Programme”).

“These bond proceeds are expected in successive issuance phases and tranches that will have an impact on the exact timeline for payment of the settlement amount in installments (where applicable).”

However, a source in one of the GenCos told Vanguard that the deal which was being pushed through by the Presidential Power Sector Debt Reduction Plan Committee, was in bad faith and calculated to undermine the pledge by President Tinubu to resolve the financial crisis facing the Nigerian Electricity Supply Industry, NESI.

The source, who did not want to be named for fear of victimization, noted that at the meeting between the Ministers of Finance and Power, the Special Adviser to the President on Energy and selected chairmen of power generation companies, the 50 per cent offer was roundly rejected.

“For them now to draw up individual contracts for the companies and force it down on them is quite unfortunate. The GenCos have again rejected it and we are insisting that the government should pay off the debt in full,” the source added.

The source explained that after the GenCos rejected the offer, the companies presented two potential approaches to the government, which the contract documents ignored.

According to the source, the first option was for the government to immediately pay N2.4 trillion to the GenCos, with the balance deferred to later dates.

The second option was for the application of a 10 per cent haircut on interest relating to energy and capacity delivered while paying deemed capacity and true-up in full.

Another GenCo source, who confirmed the contract offers, said the companies were given just five days to accept the offer.

“The contract papers were sent on October 16, with companies given October 21, as the deadline to respond to the offer. As far as I know, all the GenCos rejected it,” the source said.

On what would happen if nothing was done (about the debt), the document said: “Without this debt settlement and refinancing, financial distress within the NESI value chain would worsen, leading to reduced power generation and ultimately low supply to customers, higher risks of system collapse, and further erosion of investor confidence”.

Approached for comments on the government’s plan, the Managing Director of Mainstream Energy Solution Limited (Operators of Kainji and Jebba Hydro plants), Lamu Audu, said the solution to the debt crisis must be one that was agreeable to all parties.

He stated that the only way to attract more investments into the sector was to resolve the issue of financial challenges facing power generation companies and observed that while the realities facing hydro power plants were different from gas powered plants, the financial challenges were crippling operations.

He said the company was working with the government on a deal that would convert some parts of the debt to concessionaire fees payable to the Bureau of Public Enterprises, BPE.

Speaking on the deal offered by the government, energy market expert, Lanre Elatuyi, said it sent the wrong signal to investors.

Elatuyi noted that power generation companies were struggling to remain in business, adding that the government had an obligation to its commitment to the operators.

“Though I haven’t heard about this, if this is true, then we are sending a very wrong signal that will deter investments in the electricity sector.

“GenCos are currently faced with liquidity issues that affect optimal performance and ability to expand their capacities. With this haircut, their situations get worsened and the Nigerian electricity supply industry will soon experience serious resource adequacy problems.

“Also, we may experience high generation costs as GenCos will try to raise their marginal cost to accommodate anticipated loss of revenue,” he explained.

He pointed out that the government “should not expect more investors to come to a sector where cost recovery is very uncertain.”

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BREAKING: “Some people are tormenting Nigeria with orchestrated insecurity” – Akpabio reveals

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Senate President Godswill Akpabio has declared that Nigeria is grappling with what he described as “organised and orchestrated insecurity” driven by terrorism, banditry and insurgency.....TAP TO CONTINUE READING

Akpabio spoke on Thursday at the 14th national caucus meeting of the All Progressives Congress (APC) at the state house conference centre in Abuja.

His words: “We are very sad that people have decided to torment Nigeria with very serious, organised and orchestrated insecurity.

“So as we grow there will be envy, there will be jealousy, and with jealousy comes hatred, and with hatred comes challenges.

“So Mr. President, ours in this caucus today is to assure you that we are not only with you, we are also praying for you, praying for you to overcome the challenges of the day, and also praying for Nigeria.”

The Senate President said the caucus aligned with states mourning lives lost to attacks by terrorists, bandits and insurgents.

He commended President Bola Tinubu for securing the release of more than 100 children kidnapped recently.

“We thank the President for the release of over 100 children who were kidnapped very recently, and we pray to God to give him the ability and the enablement to release the remaining children to rejoin their families,” Akpabio said.

He consoled families of victims and members of the armed forces killed in the line of duty.

“We condole with members of the families who have lost their loved ones, including the armed forces, who lost their lives in the course of trying to protect not just those children, but protecting lives and properties in the country,” he said.

Akpabio said Nigeria’s stability is closely linked to developments in neighbouring countries.

He praised Tinubu for intervening in the Benin Republic to stabilise democracy and urged sustained regional engagement.

Akpabio disclosed that the Senate had taken what he described as “bold decisions” to deter criminality.

He said lawmakers were pushing to classify kidnapping as terrorism, making kidnappers liable to the death penalty once the bill receives presidential assent.

The Senate President also urged governors to enforce laws on capital offences, warning that reluctance to sign execution warrants could embolden criminals.

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BREAKING NEWS: Deputy Superintendent of Police, DSP Dies in Suspected Suicide Over Alleged Arms Supply to Bandits – FULL DETAILS

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A Deputy Superintendent of Police, DSP, Isah Abdullahi, also known as Kunkuri, attached to MOPOL 12 in Minna, Niger State, has died after shooting himself with a pistol in the armoury he headed.....TAP TO CONTINUE READING

The tragic incident followed allegations linking him to the supply of arms and ammunition to bandits and other criminals in the state.

The crisis began for the deceased DSP during a routine audit of MOPOL 12’s armoury by detectives from Abuja, who discovered 13 missing AK-47 rifles and over 2,000 rounds of ammunition.

It was gathered that further investigation led to the arrest of Inspector John Moses, attached to the Niger State Government House, who confessed that the late DSP supplied him with arms for delivery to bandits in Erena, Shiroro Local Government Area. Moses reportedly named his brother, an informant to the criminals, as the middleman in the deal.

Against this background, the suspects were taken to Abuja by operatives from the Office of the National Security Adviser, ONSA, for deeper investigation.

DAILY POST learnt that as probes intensified, Abdullahi was brought from Abuja to the armoury for a physical audit. It was there that he allegedly grabbed a pistol and shot himself in the head, dying instantly.

The armoury’s electronic controls, accessible only to Abdullahi, reportedly gave him the opportunity to commit the act.

Furthermore, it was gathered that officers with him were arrested for negligence and faced an Orderly Room trial, while four other police officers linked to Abdullahi are being interrogated.

Confirming the development, the Niger State Police Commissioner, Adamu Elleman, said Inspector Moses is currently under investigation by the Office of the National Security Adviser, ONSA.

According to him, “He (Abdullahi) smartly brought out a pistol and shot himself when empty ammunition boxes were discovered.”

A special ONSA team is guarding the armoury, and an autopsy is planned to determine the exact cause of death.

Also, in a statement issued by the command’s Public Relations Officer, SP Wasiu Abiodun, who confirmed the incident, it was stated that DSP Abdullahi shot himself during an investigation into his involvement in illegal ammunition dealings.

According to him, “On December 16, 2025, at about 2:30 pm, one DSP Abdullahi Isah, attached to 12 PMF Minna, who was initially arrested on 15th December for being suspected of involvement in illegal dealings of ammunition, was taken to his office for a routine arms audit.

“Unfortunately, while the audit process was ongoing, the said officer shot himself in the head through a pistol he picked up within the office and died on the spot.”

Abiodun also disclosed, “Meanwhile, the policemen who were detailed along for the audit and investigation activities were arrested for negligence in the line of duty, for allowing such a situation to occur. Further investigation is in progress at Paiko Road Police Station, Minna.”

It was further gathered that the armoury is now under 24-hour guard by an ONSA team as authorities work to unravel the full extent of the alleged scheme.

Sources also revealed that Abdullahi owned multiple properties and cars.

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Top Reason Why President Tinubu Reconstitutes NERC Board [Full List]

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President Bola Ahmed Tinubu has approved the reconstitution of the Board of the Nigerian Electricity Regulatory Commission (NERC), following the Senate’s confirmation of its members on December 16.....TAP TO CONTINUE READING

Naija News reports that this was disclosed in a statement on Thursday by Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga.

Members of the reconstituted Board are:

• Mulisiu Olalekan Oseni, PhD. — Chairman

Dr Oseni started his service as a Commissioner in January 2017. He was subsequently appointed Vice Chairman of the Commission.

His appointment as Chairman took effect from 1 December 2025 and shall subsist until the completion of his ten-year tenure at the Commission, in accordance with the provisions of the Electricity Act, 2023.

• Yusuf Ali, PhD. — Vice Chairman

Dr Ali was first appointed as a Commissioner in February 2022. His designation as Vice Chairman took effect on 1 December 2025 and shall remain in effect until the completion of his first term.

• Mr Nathan Rogers Shatti — Commissioner

Mr Shatti is serving a second term as commissioner. He was first appointed in January 2017.

• Mr Dafe Akpeneye — Commissioner

Mr Akpeneye is serving a second term, having been first appointed as a Commissioner in January 2017.

• Aisha Mahmud Kanti Bello — Commissioner

Aisha Bello is serving her second term, having been first appointed as a Commissioner in December 2020.

• Dr Chidi Ike — Commissioner

Dr Ike is serving his first term, having been first appointed as a Commissioner in February 2022.

• Dr Fouad Animashaun — Commissioner. Dr Animashaun is serving his first term, effective December 2025.

He is an energy economist with extensive experience in the Nigerian power sector and most recently served as Executive Commissioner and Chief Executive Officer of the Lagos State Electricity Regulatory Commission.

“President Bola Ahmed Tinubu has charged the board members of NERC to deepen and consolidate the ongoing transformation of Nigeria’s power sector, in strict alignment with the letter and spirit of the Electricity Act, 2023,” the statement added.

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