Despite earlier assurances from the Federal Government, Nigeria’s power generation companies (GenCos) say they’ve heard nothing further about a promised meeting with President Bola Tinubu to address the staggering N4.7tn debt owed to them.
Close to two months after the Ministry of Power indicated that talks were underway to facilitate a high-level meeting between the GenCos and the President, stakeholders in the power sector say they are still waiting for any formal communication or progress.
In May, following an urgent meeting between the Minister of Power, Adebayo Adelabu, and the GenCos in Abuja, the government pledged swift action to ease the liquidity crisis threatening the electricity sector. Part of that plan involved settling N2tn of the outstanding debt before the end of the next quarter, with the rest to be cleared through promissory notes and other instruments over the next six months.
However, industry insiders confirm that no payments have been made so far, and the much-anticipated presidential meeting remains unscheduled. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, confirmed there’s been no follow-up or contact from the government.
The delay comes amid growing concerns that the power sector is inching closer to collapse. Many GenCos, particularly gas-fired thermal plant operators, say they’re struggling to keep their operations afloat as they cannot pay gas suppliers due to the backlog of unpaid invoices.
According to internal documents reviewed by The PUNCH, GenCos only received about 28% of their total invoiced amount for 2024, with N762.1bn paid out of N2.7tn. This leaves a balance of roughly N1.94tn unpaid for last year alone. The situation is made worse by ongoing monthly accruals, reportedly adding over N200bn to the debt burden each month.
One operator, Transcorp Power, disclosed it is owed over N650bn, noting that the cash crunch has stalled critical expansion plans.
The power minister’s media aide, Bolaji Tunji, said efforts were still being made to arrange the meeting with President Tinubu. He noted that once a date is finalized, the GenCos will be informed.
With continued delays, uncertainty remains around how the Federal Government intends to tackle the ballooning debt—especially as only N900bn is reportedly earmarked for the entire sector in the national budget.
Industry watchers fear that without immediate financial intervention, more power plants may shut down, worsening the nation’s electricity supply challenges.
