President Tinubu to Engage Power Generating Companies Over N4 Trillion Debt Threatening Nigeria’s Electricity Supply

In response to a looming crisis in Nigeria’s power sector, President Bola Tinubu is slated to meet with the leadership of power-generating companies to address the N4 trillion debt that jeopardizes the nation’s electricity supply chain.

This follows a recent meeting between Minister of Power Adebayo Adelabu and GenCos chairmen in Abuja, which underscored the sector’s liquidity challenges and risk of grid collapse.

The Federal Government has resolved to pay a significant part of the debt immediately, with the balance to be cleared over six months using promissory notes, according to Bolaji Tunji, Special Adviser to the Minister of Power. This dual approach aims to provide immediate cash flow to the sector while managing the outstanding debt through financial instruments.

Minister Adelabu stressed, “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.” He described the situation as a national emergency and affirmed the government’s commitment to resolving the crisis.

Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, led the GenCos delegation and warned that the sector faces collapse if the debt and liquidity issues are not addressed. The debt includes N2 trillion for 2024 power supply and N1.9 trillion in legacy arrears.

The government’s intervention is seen as crucial to restoring financial stability and operational viability in Nigeria’s power sector, which is essential for economic development.