Tinubu to Meet Power GenCos Over N4 Trillion Debt Crisis
Government Pledges Immediate Payment to Stabilize Sector
President Bola Tinubu is scheduled to meet with Nigeria’s power Generation Companies (GenCos) leadership following urgent discussions between the Federal Government and electricity producers. The talks focus on resolving the N4 trillion debt threatening to collapse the country’s power sector.
Adebayo Adelabu, Minister of Power, revealed this development on Tuesday after high-level negotiations with GenCos executives in Abuja. The minister assured stakeholders of the government’s commitment to addressing the liquidity crisis.
Related: Transcorp Plc reels under N600bn power sector debt
Government’s Debt Resolution Plan
Adelabu outlined a two-pronged payment strategy: “There is a need to pay a significant amount of the debt in cash. At the minimum, let us pay a substantial amount, then use debt instruments like promissory notes for the rest.” The government plans to settle the remaining balance within six months.
The minister emphasized President Tinubu’s personal involvement, stating, “We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis.”
Power Producers Sound Alarm Over Sector Collapse
The GenCos delegation, led by Sani Bello of Mainstream Energy Solutions and APGC, warned that the N4 trillion debt has pushed Nigeria’s electricity sector to the brink. Bello explained that liquidity constraints have prevented power producers from securing loans or maintaining critical infrastructure.
Kola Adesina, Chairman of Egbin Power, described the situation as a “national emergency,” stressing that “Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”
Proposed Sector Reforms and Tariff Adjustments
Minister Adelabu acknowledged systemic challenges including payment defaults, gas shortages, and forex volatility. He proposed market liberalization and cost-reflective tariffs, with targeted subsidies for vulnerable consumers.
Related: CJN calls for judicial backing to drive power sector reforms
Joy Ogaji, CEO of APGC Power, highlighted how naira depreciation—from ₦157/$1 in 2013 to ₦1,600/$1—has severely impacted GenCos’ operations and loan servicing capacity.
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