President Bola Tinubu is set to meet with the leadership of Nigeria’s power-generating companies (GenCos) to address the escalating N4 trillion debt threatening the nation’s electricity supply chain. This initiative follows a high-level meeting between the Minister of Power, Adebayo Adelabu, and GenCos’ chairpersons in Abuja.
The debt comprises N2 trillion accrued in 2024 and N1.9 trillion in legacy obligations. GenCos have expressed concerns over the impact of this debt on their operations, citing difficulties in servicing loans, maintaining infrastructure, and investing in capacity expansion. Col. Sani Bello (rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), warned of a potential collapse of the power ecosystem without urgent intervention.
Minister Adelabu assured that the Federal Government plans to make an immediate cash payment of a substantial portion of the debt, with the remaining balance to be settled through financial instruments such as promissory notes within six months. He emphasized the urgency of resolving the debt to stabilize the sector and prevent further crises.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, highlighting the critical role of power in industries, homes, and hospitals. Dr. Joy Ogaji, CEO of APGC, pointed out systemic challenges including erratic gas supply, payment defaults, and currency volatility, which have been exacerbated by the naira’s depreciation from N157/$1 in 2013 to over N1,600/$1.
Minister Adelabu acknowledged the government’s role in the sector’s struggles and pledged to implement reforms aimed at easing operational bottlenecks. He advocated for full liberalization of the power sector and the adoption of cost-reflective tariffs, while assuring that targeted subsidies would continue for economically disadvantaged Nigerians.
The planned meeting between President Tinubu and GenCos’ leadership aims to fast-track the resolution of the debt crisis and ensure the sustainability of Nigeria’s power sector.
[Sources: Punch Newspapers, The Guardian Nigeria, Premium Times, Leadership News]
