The Presidency has initiated internal approval processes to resolve the N2 trillion legacy debt owed to electricity generation companies (GenCos), with a goal to address the issue before the end of the next quarter.
This was disclosed on Monday by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, at the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC).
Onagoruwa acknowledged the financial strain GenCos are under and assured that the government is actively working on alternative debt instruments to settle the obligations despite fiscal constraints.
“We are empathetic to what GenCos are facing,” she said. “We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort. Internal approvals are currently underway.”
Although no specific timeline was given, she expressed optimism that a substantial update would be available before the next quarterly NESI meeting.
This move follows recent warnings from GenCos over mounting debts, which have now reportedly exceeded N4 trillion. The Senate Committee on Power also raised the alarm about the deepening liquidity crisis in the power sector, revealing that the government owes about N200 billion monthly due to persistent tariff shortfalls. So far this year, it is estimated that the government has accumulated approximately N800 billion in unpaid bills.
The NESI meeting brought together key players across the electricity value chain, including regulators, operators, and policy experts, to address long-standing challenges in the sector. Discussions covered the widening metering gap, the Presidential Metering Initiative, the proposed Meter Asset Fund, and the establishment of the Nigerian Independent System Operator (NISO).
Concerns about market fragmentation due to decentralisation were raised by John Akinnawo, Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, who urged NISO to ensure harmonised policies and operations.
In response, NISO’s Managing Director, Abdu Mohammed Bello, outlined the agency’s vision to enhance transparency and system coordination within the evolving power market.
Stakeholders welcomed the Presidency’s commitment to resolving the GenCo debt, expressing optimism that ongoing reforms could lead to a more sustainable and reliable electricity supply industry in Nigeria.
