The Federal Government has scheduled a crucial meeting between President Bola Ahmed Tinubu and the leadership of Nigeria’s Power Generation Companies (GenCos) to address a growing debt crisis amounting to ₦4 trillion.
This was disclosed in a statement by the Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Mr Bolaji Tunji. The meeting, he said, is intended to chart a clear path towards resolving the debt backlog that has threatened the stability of the power sector.
Speaking on the matter, the Minister of Power, Mr Adebayo Adelabu, assured stakeholders that the government would immediately settle a substantial part of the debt, while the remaining balance would be cleared within six months through financial instruments such as promissory notes.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated.
He acknowledged that the government shares in the responsibility for the current state of the power sector and pledged to pursue structural reforms aimed at removing operational inefficiencies. These reforms, he said, would include a review of the regulatory environment, a push for full liberalisation, and the implementation of cost-reflective tariffs.
“Citizens must pay the appropriate price for the energy consumed,” the Minister said, noting that while targeted subsidies would remain for vulnerable populations, the economy could no longer support broad, unsustainable subsidies.
Adelabu also called on GenCos to support public education campaigns on electricity usage and the realities of tariff structures.
The delegation of GenCos was led by Major General Sani Bello (rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generation Companies. He warned that persistent liquidity issues had left the GenCos unable to service loans or maintain essential infrastructure.
Also Read: Tinubu Establishes Committee for Nigeria’s Hosting of AU MSME Forum
“Without urgent intervention, the entire power ecosystem could collapse,” Bello warned.
Echoing this concern, Mr Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the crisis as a national emergency, stressing that reliable electricity supply was vital to the survival of homes, industries, and healthcare systems.
Mrs Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, highlighted several systemic challenges facing GenCos, including chronic payment defaults, erratic gas supply, and foreign exchange volatility.
She lamented the steep depreciation of the naira—from ₦157 to the dollar in 2013 to ₦1,600 in 2024—stating it had crippled GenCos’ ability to meet financial obligations, including maintenance and loan repayments.
“GenCos have borne unsustainable risks, from grid failures to unproductive taxes, yet we remain patriotic in our service to the country,” she said.
The upcoming meeting with the President is expected to yield critical decisions that could determine the future of Nigeria’s fragile electricity supply chain.
