Senior Presidential Aide, Ogra Corrects Misinformation On Power Sector Reforms

Senior Special Assistant to President Bola Ahmed Tinubu on Digital Engagement, Strategy and New Media, O’tega Ogra, has pushed back against what he described as “misinformation couched as critical thought” in commentary by Arise TV anchor, Rufai Oseni, on the Federal Government’s ongoing power sector financial reforms.

In a detailed response, Ogra said the figures and processes surrounding the settlement of legacy debts in the electricity sector were clear and verifiable, stressing that public discourse must be anchored on facts rather than “emotionally convenient analogies.”

According to him, the legacy obligation claims by stakeholders in the power sector, covering the period from February 2015 to March 2025, were initially put at ₦4.7 trillion.

However, following reconciliation and regulatory review, the figure was reduced to ₦3.3 trillion as the “full and final negotiated settlement.”

“That is a reduction of ₦1.4 trillion, about 29.8 per cent. That is not spin. It is the difference between a claim and a verified obligation,” Ogra stated, insisting that claims in a regulated market must be subjected to scrutiny based on contracts, settlement records and admissible obligations.

He dismissed comparisons likening the process to market bargaining, noting that “government is not a buyer haggling prices at Obalende market,” but rather an entity operating within a structured regulatory framework where all claims must be validated.

On claims that Generation Companies (GenCos) were entering agreements out of desperation, Ogra pointed to what he described as “measurable progression” in the settlement process. He revealed that as at January 8, 2026, five GenCos covering eight power plants had signed negotiated settlement agreements valued at about ₦827 billion following the close of Series I, Phase I, which raised ₦501 billion.

He added that by March 31, 2026, the number had increased to eight GenCos — comprising two public and six privately owned entities — covering 17 power plants, with signed agreements rising to about ₦2.28 trillion.

“That is not a phantom process. It is measurable progression,” he asserted.

Addressing concerns over the use of bonds in the settlement plan, the presidential aide clarified that while bonds are not the same as immediate cash, the programme had already moved into actual funding and disbursement.

He disclosed that Phase I of the programme was structured at ₦1.23 trillion, with ₦501 billion already raised under the first series. Of that amount, ₦223 billion has been disbursed to GenCos and gas suppliers, while ₦197 billion is currently being processed, largely for gas obligations.

“That is liquidity entering the system, not paper being rearranged,” Ogra emphasised.

The Presidential aide further outlined the policy sequence underpinning the reforms, noting that President Tinubu approved a comprehensive review of the power sector in July 2024 following a policy paper presentation. This was followed by an engagement with GenCos on July 26, 2025, where the ₦4.7 trillion claims were presented, and subsequently, Federal Executive Council approval on August 15, 2025, of a framework of up to ₦4 trillion.

According to Ogra, the reconciliation process that led to the verified ₦3.3 trillion, alongside market issuance and disbursement, reflects a deliberate and transparent reform pathway.

“That is not evasion. That is process. And in a sector long weakened by opacity, process is the core reform,” he said.

While acknowledging concerns about structural challenges in the power sector, Ogra agreed that settlement alone would not resolve all issues, noting that the government’s approach also includes tariff alignment tied to service delivery, metering expansion, improved payment discipline and targeted support for vulnerable consumers.

He maintained that the reforms represent a structured attempt to stabilise the sector and break the cycle of recurring debt.

“Verified settlements exist. Funding has been raised. Disbursements have begun. Most of the value is already covered in signed agreements by operators,” he said, adding that while criticisms of incompleteness may be valid, it is “highly inaccurate” to suggest that nothing has been achieved.

Ogra concluded that the initiative may not mark the end of the sector’s challenges but represents a serious and coordinated effort to fix longstanding problems, urging analysts and commentators to distinguish between ongoing reform and “accounting fiction.”