President Bola Ahmed Tinubu is expected to hold a crucial meeting with the heads of Nigeria’s power-generating companies (GenCos) to urgently address a mounting N4 trillion debt threatening the nation’s electricity sector.
This initiative follows a recent high-level discussion in Abuja between the Minister of Power, Adebayo Adelabu, and the chairmen of several GenCos.
The talks come amid growing concerns over liquidity constraints that could lead to a potential collapse of the national power grid.
In a statement issued on Sunday, Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Power Minister, disclosed that the Federal Government intends to settle a large part of the debt immediately.
The remaining amount will be addressed using financial tools like promissory notes over a six-month period.
Adelabu stated, “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.”
The minister emphasized the seriousness of the situation, calling it 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.
Representing the GenCos was Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies.
He reiterated the urgency, warning that the sector is on the brink of collapse due to the accumulating debt and ongoing liquidity issues.
Earlier reports indicated that GenCos had cautioned the Federal Government over the growing debt, now estimated at more than N4 trillion, comprising N2 trillion for electricity supplied in 2024 and N1.9 trillion in legacy arrears.
