Tinubu to meet GenCos over N4tn electricity debt

President Bola Tinubu is set to hold a crucial meeting with the heads of Nigeria’s electricity-generating companies in a bid to tackle the N4 trillion debt threatening the country’s power supply system.

The planned talks come on the heels of an emergency meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and the chairmen of the generation companies (GenCos) in Abuja, amid growing concerns over a potential collapse of the national grid due to severe liquidity challenges in the sector.

According to a statement issued on Sunday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the minister, the Federal Government has committed to paying a significant portion of the outstanding debt immediately. The remaining balance will be settled through financial instruments, including promissory notes, over the next six months.

He explained that this proposal would be tabled during the upcoming meeting between President Tinubu and the GenCos’ leadership.

“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.

The minister underscored the government’s resolve to avert a collapse of the power sector, describing the issue as a national emergency.

“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” he added.

Leading the delegation of the GenCos was Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies. Bello warned that the industry was on the brink of collapse due to the escalating debt burden and persistent liquidity problems.

Earlier reports indicated that the GenCos had raised alarms over the growing debts, which have now surpassed N4 trillion. The total includes N2 trillion owed for power supplied in 2024 and an additional N1.9 trillion in legacy debt.