President Bola Tinubu is preparing to meet with the leadership of Nigeria’s electricity-generating companies amid growing concerns over a staggering ₦4 trillion debt threatening to collapse the nation’s power infrastructure.
The move follows high-level discussions between the Minister of Power, Adebayo Adelabu, and chairmen of various Generation Companies (GenCos), held in Abuja on Tuesday. According to a statement released on Sunday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister, the Federal Government is treating the debt crisis as an urgent national priority.
Adelabu assured the GenCos that the government is committed to making an immediate partial payment, while the remaining balance will be settled through alternative financial instruments such as promissory notes. He added that these proposals would be tabled during a forthcoming meeting between President Tinubu and GenCo executives.
“There is a critical need to disburse a significant portion of the debt in cash. At the very least, we should settle a substantial amount now and issue promissory notes for the balance,” Adelabu stated.
He pledged that the total debt would be cleared within six months, underlining the government’s commitment to stabilising the power sector and avoiding further deterioration.
Leading the GenCos’ delegation was Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC). Bello warned that the financial shortfall has become an existential threat to the sector, leaving operators unable to secure funding or maintain critical infrastructure.
“Without immediate intervention, the entire power value chain is at risk of collapsing,” he said.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the urgency. “This is no longer just a business concern this is a national emergency. The entire country runs on electricity: homes, hospitals, factories. We can’t afford failure.”
Acknowledging the government’s role in the sector’s difficulties, Adelabu pledged reforms aimed at easing operational hurdles. He also advocated for full liberalisation of the sector and the implementation of cost-reflective tariffs.
“Citizens must begin to pay the true cost of electricity. The Federal Government will continue to shield low-income Nigerians through targeted subsidies, but across the board, subsidies are no longer sustainable,” he said, calling for a nationwide sensitisation campaign to promote public understanding.
CEO of APGC Joy Ogaji, detailed some of the systemic challenges plaguing the sector: chronic payment defaults, erratic gas supply, regulatory bottlenecks, and the volatility of foreign exchange markets. She noted that the collapse of the naira from ₦157/$1 in 2013 to over ₦1,600/$1 has made it nearly impossible for GenCos to service loans or fund routine maintenance.
“GenCos have continued to operate in extremely difficult conditions absorbing risks related to grid instability, forex volatility, and even unproductive tax burdens while staying patriotic and committed to national development,” she said.
To put the sector on a path toward sustainability, Adelabu also announced plans for regulatory reviews aimed at reducing excessive levies and fostering market stability. He urged GenCos to partner with the government on public education efforts around electricity usage and the realities of tariff reform.
