President Bola Tinubu will meet with the leadership of Nigeria’s Power-Generating Companies (GENCos) as part of an emergency effort to address the N4tn debt threatening to cripple the country’s electricity supply chain.
The move follows a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and chairmen of GenCos in Abuja, amid mounting fears of a possible collapse of the national grid due to liquidity constraints in the sector.
A statement by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, on Sunday, said the Federal Government had resolved to settle a substantial portion of the debt immediately while the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He said this would be proposed in a meeting being planned between President Bola Ahmed 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 debt instruments in promissory notes to pay the rest,” Adelabu said.
He emphasized the Federal Government’s determination to prevent a collapse of the power sector, describing the situation as a national emergency.
“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.
The GenCos were led by the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), who warned that the sector faced a looming collapse due to the mounting debt and persistent liquidity challenges.
Gencos had issued a warning to the Federal Government over the continued accumulation of debts now totalling over N4tn.
The debt comprises N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.
