President Bola Tinubu is set to engage with the leadership of Nigeria’s power-generating companies (GenCos) in a bid to address the mounting N4 trillion debt threatening the country’s electricity supply. The meeting, which is expected to take place in the coming days, aims to find immediate solutions to prevent a collapse of the national grid caused by liquidity challenges in the power sector.
The move follows a high-level meeting earlier this week between the Minister of Power, Adebayo Adelabu, and the chairmen of GenCos in Abuja. According to a statement from the minister’s Special Adviser on Strategic Communications, Bolaji Tunji, the Federal Government is prepared to pay a substantial portion of the debt in cash, while the remainder will be cleared using financial instruments like promissory notes within six months.
Minister Adelabu emphasized that resolving the debt issue was a matter of national urgency. “We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” Adelabu said, describing the situation as a national emergency.
The power-generating companies, led by Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), have repeatedly warned that the industry faces a looming collapse. Bello stated that the outstanding debt—comprising N2 trillion for power supplied in 2024 and an additional N1.9 trillion in legacy debt—has created severe liquidity constraints.
The government’s intervention aims to settle a significant portion of the debt promptly, ensuring that the power sector can continue to operate without further disruption. While the exact details of the proposed debt settlement plan remain under discussion, the focus will be on stabilizing the sector and securing its long-term sustainability.
The Federal Government’s intervention has been described as crucial for averting a power crisis that could affect millions of Nigerians. With the national grid under immense pressure, the timely resolution of the debt issue will determine the stability of the country’s power supply in the coming months.
As the situation develops, the government continues to work closely with GenCos to navigate the financial challenges and prevent a collapse of the power sector.
