Tinubu to Meet GenCos Over N4tn Debt as Power Crisis Deepens
Tinubu to Meet GenCos Over N4tn Debt as Power Crisis Deepens
The Minister of Power, Mr. Adebayo Adelabu, on Sunday announced that a high-level meeting has been scheduled between President Bola Tinubu and the leadership of the Power Generation Companies (GenCos) to address a staggering N4 trillion debt threatening the nation’s electricity supply.
In a statement issued by his Special Adviser on Strategic Communications and Media Relations, Mr. Bolaji Tunji, the minister said the meeting aims to chart a viable path toward resolving the debt crisis that has left power producers struggling to stay afloat.
Adelabu assured that the Federal Government is ready to pay a substantial portion of the debt immediately, while the outstanding balance would be settled through financial instruments, such as promissory notes, within six months.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu said.
The minister acknowledged that the government shares part of the blame for the sector’s dysfunction and pledged not only to clear the backlog but also to introduce reforms to eliminate operational bottlenecks.
He called for a full liberalisation of the power sector and advocated for cost-reflective tariffs to sustain energy generation.
“Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians, but we must realise that our economy cannot sustain blanket subsidies indefinitely,” he said.
Adelabu also unveiled plans to review existing regulations to reduce levies and enhance market stability, urging GenCos to collaborate with the government in educating the public on electricity usage and tariff realities.
The GenCos were represented by Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies. Bello warned that liquidity challenges have crippled the ability of GenCos to service loans and maintain essential infrastructure.
“Without urgent intervention, the entire power ecosystem could collapse,” he said.
Mr. Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, stressing that reliable electricity is vital to the survival of homes, industries, and healthcare facilities.
Mrs. Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, highlighted long-standing issues such as payment defaults, erratic gas supply, and forex instability.
She noted that the naira’s steep depreciation—from ₦157/$1 in 2013 to ₦1,600/$1 in 2024—has severely impacted GenCos’ ability to repay loans and carry out routine maintenance.
“GenCos have borne unsustainable risks from grid failures to unproductive taxes while remaining patriotic,” she said.
