President Tinubu to meet with GenCos over ₦4 trillion debt in power sector.
President Bola Tinubu will meet with heads of electricity-generating firms to discuss the ₦4 trillion power industry debt.
According to a statement issued on Sunday by Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations, to the Minister of Power, Adebayo Adelabu, the federal government has promised to address the debt urgently following high stakes talks between Adelabu and the chairmen of Generating GenCos in Abuja on Tuesday.
He stated that the FG’s action is intended to avert an imminent collapse of the country’s electricity grid.
The minister promised GenCos executives that the government would prioritise quick payment of a major portion of the ₦4tn debt, while the remainder would be paid through alternative loan instruments.
He stated that this would be suggested during a meeting scheduled between President Tinubu and GenCos leadership.
“It is necessary to pay a considerable portion of the debt in cash. Allow us to pay a considerable amount first, then request a debt instrument in the form of promissory notes to cover the remainder.”
He guaranteed payment of the outstanding sum within six months using financial tools such as promissory notes.
“We understand how urgent this situation is. “The government is committed to resolving this debt to stabilise the sector and prevent further crises,” Adelabu said, adding that the president would meet with GenCo’s leadership to expedite the process.
The GenCoS were led by Col. Sani Bello, Chairman of Mainstream Energy Solutions and the Association of Power Generating Companies (APGA). Bello has previously raised concerns about the sector’s precarious status, 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 its importance, saying, “This is a national emergency.” Everything depends on power—industries, houses, and hospitals. We can’t afford to let the sector fail.
Adelabu acknowledged the government’s role in the sector’s challenges, promising to pay off the debt and 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 an acceptable price for the energy they consume. The federal government would continue to offer targeted subsidies to economically disadvantaged Nigerians. “We have to understand that our economy cannot sustain subsidies indefinitely,” he said, urging for public awareness efforts to increase 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 affected maintenance budgets and debt repayments, according to the speaker.
“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she remarked.
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.