President Bola Tinubu is set to meet with the leadership of Nigeria’s Power Generation Companies (GenCos) over a staggering N4 trillion debt crippling the electricity sector, according to Minister of Power, Mr. Adebayo Adelabu.
The meeting, aimed at finding sustainable solutions to the growing debt crisis, was disclosed in a statement on Sunday by Mr. Bolaji Tunji, Special Adviser on Strategic Communications to the minister.“We recognise the urgency of this matter.
The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu said.
He revealed that the Federal Government plans to immediately pay a substantial part of the debt, with the remainder to be settled within six months through financial instruments like promissory notes.
Adelabu acknowledged that the government has contributed to the sector’s financial strain and pledged structural reforms to remove operational hurdles.“We must move towards a fully liberalised power market and adopt cost-reflective tariffs.
Citizens must pay the appropriate price for the energy they consume,” he said, while also assuring that targeted subsidies would remain for the most vulnerable.
The minister also announced a plan to review existing regulations to reduce levies and promote market stability. He called on GenCos to work with the government in educating the public on energy usage and tariff realities.
At the meeting, GenCos were represented by Col. Sani Bello (Rtd), Chairman of Mainstream Energy and the Association of Power Generating Companies. He issued a stark warning: “Without urgent intervention, the entire power ecosystem could collapse.”
Mr. Kola Adesina, Chairman of Egbin Power and First Independent Power Ltd, described the situation as “a national emergency,” stressing that reliable electricity is vital for homes, industries, and health facilities.
Mrs. Joy Ogaji, CEO of the Association of Power Generation Companies, outlined the sector’s major problems, including payment defaults, erratic gas supply, and foreign exchange instability.
She decried the naira’s free fall, from ₦157/$1 in 2013 to ₦1,600/$1 in 2024, noting that it has made it nearly impossible for GenCos to meet financial and maintenance obligations.“GenCos have borne unsustainable risks from grid failures to unproductive taxes while remaining patriotic,” Ogaji stated.
The government’s promised intervention comes at a critical moment for Nigeria’s troubled power sector, which has long struggled with chronic underfunding and systemic inefficiencies.
