President Tinubu to Meet Power GenCos Over N4 Trillion Debt Crisis
President Bola Tinubu is scheduled to hold crucial talks with Nigeria’s power generation companies (GenCos) leadership to address the Federal Government’s staggering N4 trillion debt owed to electricity producers, the Minister of Power revealed on Sunday.
Government Commits to Debt Resolution
Power Minister Adebayo Adelabu, through his Special Adviser Bolaji Tunji, confirmed the upcoming high-level meeting aims to find sustainable solutions to the liquidity crisis threatening Nigeria’s electricity supply chain.
The Federal Government plans to immediately settle a substantial portion of the debt, with remaining balances to be addressed through structured financial instruments like promissory notes within six months.
Power Sector Reforms and Tariff Adjustments
Adelabu emphasized the administration’s commitment to resolving legacy issues in the power sector while acknowledging government contributions to current operational inefficiencies.
Key reform proposals include:
- Complete sector liberalization
- Implementation of cost-reflective tariffs
- Targeted subsidies for vulnerable populations
GenCos Warn of Imminent Collapse
Industry stakeholders have raised urgent alarms about the sector’s precarious financial state:
- Col. Sani Bello (Rtd) warned of approaching breaking point
- Egbin Power Plc Chairman Kola Adesina called it a “national emergency”
- APGC CEO Joy Ogaji cited payment defaults, gas shortages, and naira depreciation as critical challenges
Call for Collaborative Solutions
Adelabu urged GenCos to partner with government in educating Nigerians about electricity costs and consumption patterns, stressing that sector stabilization requires collective effort from all stakeholders.
Background: Previous Calls for Intervention
In March 2025, NDPHC MD Jennifer Adighije had similarly appealed for presidential intervention to address the N4 trillion debt crisis and secure funding for critical power projects.
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