President Bola Tinubu will meet with leaders of Nigeria’s electricity-generating companies (GenCos) as the federal government moves to address the growing N4 trillion debt burden threatening the stability of the country’s power sector.
This follows high-level deliberations in Abuja last Tuesday between the Minister of Power, Adebayo Adelabu, and the chairpersons of major GenCos.
The talks were aimed at preventing a potential collapse of electricity infrastructure nationwide.
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In a statement issued yesterday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Power Minister, assured GenCos that the government would begin immediate disbursement of a sizeable portion of the outstanding debt.
The remainder, he added, would be settled using structured financial instruments.
“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,” Adelabu was quoted as saying.
He stated that the balance would be cleared within six months through promissory notes and other options, reaffirming the administration’s commitment to stabilising the power sector and ensuring continuity of operations.
“The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.
He noted that the President would personally engage GenCos leadership in follow-up discussions to speed up the process.
Leading the delegation of the generating firms was Col. Sani Bello (rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), who warned that the sector was nearing a breaking point.
He described the N4tn debt as a critical danger to the financial viability of operators.
He also highlighted that GenCos’ inability to access credit or maintain key infrastructure due to liquidity challenges posed a grave risk to the national energy supply.
“Without urgent intervention, the entire power ecosystem could collapse,” he warned.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, underscored the situation’s severity: “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”
Adelabu admitted that government inefficiencies had contributed to the crisis.
He promised to introduce reforms targeting operational inefficiencies and advocated for a fully liberalised power market where tariffs reflect true service costs.
“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 said.
He encouraged nationwide awareness campaigns to support the reforms.
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Joy Ogaji, CEO of APGC Power, also addressed the wider financial instability in the sector, citing inconsistent payments, gas supply shortfalls, and foreign exchange challenges.
She noted that the naira’s devaluation—from ₦157/$1 in 2013 to around ₦1,600/$1—had wreaked havoc on GenCos’ maintenance funding and debt servicing.
“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
Looking ahead, the Power Minister said regulatory adjustments were on the table to reduce burdensome charges and foster long-term market stability.
He also called for collaboration with GenCos to drive public education on responsible energy consumption and tariff expectations.
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