President Bola Tinubu will meet with the leadership of electricity-generating companies to address the ₦4 trillion power sector debt.
According to a statement by Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Adebayo Adelabu, Bolaji Tunji, the Federal Government has pledged to address the debt urgently following high-stakes talks between Adelabu and chairmen of Generating GenCos in Abuja on Tuesday.
According to the statement, the minister told GenCos executives that the government will prioritise quick payment of a major portion of the N4 trillion debt, with the remainder covered by other loan instruments.
He stated that this would be suggested during a meeting scheduled between President Tinubu and GenCos leadership.
“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest.”
Tinubu assured the payment of the outstanding balance 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 crises,” Adelabu stated, adding that the president would meet with GenCos leadership to fast-track the process.
The GenCoS were led by Col. Sani Bello, Chairman of Mainstream Energy Solutions and Chairman of the Association of Power Generating Companies (APGA), who had previously raised concerns about the sector’s precarious health, citing the ₦4 trillion debt as a serious threat to operations.
He also cautioned that liquidity issues had rendered GenCos unable to get financing or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he told reporters.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, emphasised the importance, saying, “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”
Adelabu acknowledged the government’s role in the sector’s challenges, promising to not only pay off the debt but also pursue measures to alleviate operational bottlenecks.
He underlined the importance of full deregulation of the power sector, asking Nigerians to accept cost-reflective prices.
“Citizens must pay the appropriate price for the energy consumed. The federal government will continue to provide targeted subsidies for economically disadvantaged Nigerians. We have to understand that our economy cannot sustain subsidies indefinitely,” he asserted, calling for public sensitisation campaigns to drive compliance.
Dr Joy Ogaji, CEO of APGC Power, described systemic difficulties that threaten GenCos, including frequent payment failures, unpredictable gas supply, and foreign exchange volatility.
The naira’s drop from ₦157/$1 in 2013 to ₦1,600/$1 has severely impacted maintenance budgets and loan repayments.
“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
The minister laid out proposals to move the sector towards sustainability, including regulatory reviews to decrease taxes and improve market stability.
He also asked GenCos to work together on advocacy campaigns to educate Nigerians about efficient electricity consumption and tariff realities.
