Electricity generation companies (Gencos) are urging President Bola Tinubu to urgently fix a date for a long-promised meeting over the N4.7 trillion debt owed to them by the Federal Government.
The Gencos, represented by the Association of Power Generation Companies (APGC), expressed concern over the delay in setting a date for the crucial meeting. The association’s Managing Director and CEO, Joy Ogaji, in a chat with The press, said while they are cautiously optimistic about the government’s commitment to address the debt, time is of the essence.
“We need the meeting to happen as soon as possible,” Ogaji stressed, confirming that the Gencos have already submitted a detailed letter outlining their demands and challenges to the government.
The call for urgency comes after a recent high-level meeting between the Minister of Power, Adebayo Adelabu, and Genco executives in Abuja, during which the Federal Government pledged to take immediate steps to address the mounting debt crisis. The government had also announced plans for a meeting between President Tinubu and the power companies.
Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, disclosed that the government intends to settle a significant portion of the debt in cash, with the balance to be cleared within six months using promissory notes.
The Gencos, however, remain under immense financial pressure. At the meeting with the minister, Ogaji highlighted persistent challenges, including inadequate gas supply, non-payment for power generated, and currency volatility. She pointed out that the drastic depreciation of the naira—from N157/$1 in 2013 to N1,600/$1 currently—has made operations increasingly unsustainable.
“Despite all these issues—from grid instability to excessive taxes—Gencos have remained committed to supporting the national grid,” Ogaji said.
The companies are currently owed about N2 trillion for power generated in 2024 alone, along with N1.9 trillion in legacy debts.
Minister Adelabu acknowledged the gravity of the crisis, calling the situation a “national emergency.” He reiterated the need for immediate action to prevent the collapse of the power sector.
“We must pay a significant amount in cash and cover the rest with promissory notes. The stability of the power sector is non-negotiable,” Adelabu said.
At the meeting, Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Genco association, warned that the sector could collapse if liquidity challenges persist. He said the mounting debt had crippled operations and severely limited the ability of power firms to maintain infrastructure or secure funding.
“This crisis threatens the entire power value chain,” Bello cautioned.
Supporting the call for urgency, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the debt issue as a national emergency.
“Everything relies on power—industries, homes, hospitals. We cannot allow the sector to fail,” Adesina said.
The Gencos now await a firm date for their meeting with President Tinubu, which they insist must happen without further delay to avert a deeper crisis in the power sector.
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