President Bola Tinubu is set to meet with electricity generation companies (GenCos) in a bid to tackle the mounting N4 trillion debt crisis threatening the stability of Nigeria’s power sector.
This high-level meeting comes on the heels of an earlier emergency session between Minister of Power, Adebayo Adelabu, and the leadership of the GenCos in Abuja last Tuesday. The talks were prompted by concerns over the worsening financial situation in the sector and fears that it could lead to a collapse of the national grid.
In a statement issued on Sunday, the Minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed that the Federal Government is planning an immediate cash payment to cover a portion of the outstanding debt. The remaining balance will be addressed through promissory notes to be cleared within the next six months.
Adelabu emphasized the urgency of the matter, describing the situation as a national emergency requiring swift action to keep the sector from total breakdown.
Representing the GenCos, retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and leader of the Association of Power Generating Companies, reportedly raised the alarm over the financial strain facing the industry. He warned that without prompt intervention, power generation and supply could be seriously jeopardized.
Industry figures show the GenCos are owed over N4 trillion, including N2 trillion for electricity supplied in 2024 and N1.9 trillion in long-standing liabilities.
The planned meeting with President Tinubu is expected to solidify a workable solution and ensure better coordination among stakeholders to prevent further disruptions in power supply.
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