The Federal Government is taking urgent steps to prevent a collapse of Nigeria’s power sector, with President Bola Ahmed Tinubu set to meet with the leadership of power generating companies (GenCos) over a mounting debt of over N4 trillion.
The planned presidential intervention followed a high-level meeting in Abuja between the Minister of Power, Chief Adebayo Adelabu, and the chairmen of GenCos, amid escalating concerns about the potential collapse of the national grid due to severe liquidity challenges.
In a statement released on Sunday by Bolaji Tunji, Special Adviser to the Minister on Strategic Communications and Media Relations, the Federal Government assured stakeholders of its intention to settle a significant portion of the debt immediately, with the balance to be paid over the next six months through promissory notes and other financial instruments.
“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,” Adelabu stated.
Describing the situation as a national emergency, Adelabu emphasized the government’s commitment to stabilizing the power sector and maintaining grid integrity.
The GenCos’ delegation was led by retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, who revealed that the N4 trillion debt includes N2 trillion owed for electricity supplied in 2024 and an outstanding N1.9 trillion in legacy debt.
Adelabu reiterated the Tinubu administration’s resolve to implement sustainable reforms aimed at restoring investor confidence and ensuring consistent electricity supply across the country.
