President Bola Ahmed Tinubu is expected to hold a crucial meeting with the heads of Nigeria’s power-generating companies (GenCos) in a bid to resolve the mounting N4 trillion debt threatening the nation’s electricity supply chain.
This development comes after a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and the chairmen of GenCos in Abuja. Concerns are growing over the potential collapse of the national grid due to severe liquidity issues plaguing the sector.
In a statement released on Sunday by Bolaji Tunji, Special Adviser to the Minister on Strategic Communications and Media Relations, the Federal Government announced plans to immediately settle a significant portion of the debt. The remaining balance will be paid using financial instruments, including promissory notes, within six months.
“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then issue debt instruments for the rest,” Adelabu stated, adding that the proposal will be discussed in the upcoming meeting with President Tinubu.
Describing the situation as a national emergency, Adelabu stressed the government’s resolve to avert a total breakdown of the power sector. “We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” he said.
Leading the GenCos at the meeting was Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies. He warned of an imminent collapse in the sector unless urgent steps are taken to address the debt and ongoing financial constraints.
Earlier reports had revealed that GenCos are owed over N4 trillion, including N2 trillion for electricity supplied in 2024 and N1.9 trillion in legacy debt.
