President Bola Tinubu is set to meet with the leadership of electricity-generating companies to address the N4 trillion power sector debt.
According to the statement released by Bolaji Tunji, the Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Adebayo Adelabu, on Sunday, he said the Federal Government vowed to urgently address the debt following high-stakes talks between Adelabu and chairmen of Generating GenCos in Abuja on Tuesday.
He said FG’s intervention is aimed at averting an imminent collapse of the power infrastructure in the country.
According to the statement, the minister assured GenCos executives that the government would prioritise immediate payment of a significant amount out of the N4tn debt, while the balance would be defrayed through other debt instruments.
He said this would be proposed in a meeting being planned between President Tinubu and GenCos’ leadership.
He assured the payment of the outstanding balance within six months through financial instruments such as promissory notes.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated, adding that the president would meet with GenCos leadership to fast-track the process.
The GenCoS were led by the Chairman of Mainstream Energy Solutions, who is also the Chairman of the Association of Power Generating Companies (APGA), Col. Sani Bello, who had earlier sounded the alarm over the sector’s dire state, citing the N4tn debt as a critical threat to operations.
He also warned that liquidity challenges had left GenCos unable to secure loans or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he stressed.
The Chairman of Egbin Power and First Independent Power Limited, Kola Adesina also echoed the urgency saying that all other sectors depends on power, as such it should not be allowed to fail.
Adelabu acknowledged the government’s role in the sector’s struggles, pledging to not only clear the debt but also implement reforms to ease operational bottlenecks. He emphasised the need for full liberalisation of the power sector, urging Nigerians to embrace cost-reflective tariffs.
“Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians. We have to understand that our economy cannot sustain subsidies indefinitely,” he asserted, calling for public sensitisation campaigns to drive compliance.
Dr. Joy Ogaji, CEO of APGC Power, detailed systemic challenges undermining GenCos, including chronic payment defaults, erratic gas supply, and foreign exchange volatility.
She noted that the naira’s plunge from ₦157/$1 in 2013 to ₦1,600/$1 had devastated maintenance budgets and loan repayments.
“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
The minister outlined plans to transition the sector toward sustainability, including regulatory reviews to reduce levies and enhance market stability.
He also urged GenCos to collaborate on advocacy efforts to educate Nigerians on efficient electricity use and tariff realities.
