Tinubu to meet GenCos as ₦4tn debt threatens power sector
President Bola Tinubu is expected to meet with the leadership of Nigeria’s power-generating companies as part of an emergency effort to address the ₦4tn debt threatening to cripple the country’s electricity supply chain.
The move follows a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and chairmen of GenCos in Abuja, amid mounting fears of a possible collapse of the national grid due to liquidity constraints in the sector.
A statement by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, on Sunday, said the Federal Government had resolved to settle a substantial portion of the debt immediately while the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He said this would be proposed in a meeting being planned between President Bola Ahmed Tinubu and GenCos’ leadership.
READ ALSO: GenCos to shut down operations over huge debt owed by FG
“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 said.
He emphasised the Federal Government’s determination to prevent a collapse of the power sector, describing the situation as a national emergency.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.
The GenCos were led by the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), who warned that the sector faced a looming collapse due to the mounting debt and persistent liquidity challenges.
The Gencos had earlier issued a warning to the Federal Government over the continued accumulation of debts now totalling over ₦4tn.
The debt comprises ₦2 trillion for power supplied in 2024 and ₦1.9 trillion in legacy debt.
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