In a decisive move to rescue Nigeria’s embattled power sector, President Bola Tinubu is set to meet with the leadership of electricity generation companies (GenCos) to resolve a staggering N4 trillion debt threatening the nation’s power infrastructure.
The planned high-level meeting follows an urgent dialogue between the Minister of Power, Adebayo Adelabu, and the chairmen of GenCos in Abuja last Tuesday. According to a statement by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Power Minister, the Federal Government is committed to immediately addressing the financial crisis to prevent a total collapse of the national grid.
Adelabu assured the power firms that the government would prioritize paying a substantial part of the debt upfront, while the outstanding balance would be settled through financial instruments such as promissory notes within six months.
“There is an urgent need to pay a substantial amount of the debt in cash. At the minimum, let us pay a significant part and issue debt instruments for the remainder,” Adelabu said. He emphasized the government’s resolve to stabilize the sector and avert a looming crisis, adding that President Tinubu would meet with GenCos leadership to fast-track the settlement plan.
Leading the delegation of GenCos was Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC). Bello had earlier raised the alarm over the sector’s dire liquidity challenges, warning that without urgent government intervention, the entire power value chain risked total collapse.
“Liquidity constraints have made it impossible for GenCos to access credit or maintain critical infrastructure,” Bello stated.
Echoing similar concerns, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency. “Everything hinges on power—industries, homes, hospitals. We cannot afford to let this sector fail,” Adesina stressed.
The power minister acknowledged the government’s contribution to the sector’s current challenges and pledged comprehensive reforms to ease operational hurdles. He called for a full liberalisation of Nigeria’s power market and advocated for cost-reflective electricity tariffs to ensure the sector’s financial viability.
“Citizens must pay fair rates for the power they consume. While the government will continue to offer targeted subsidies for the most vulnerable, Nigeria’s economy cannot sustain indiscriminate subsidies,” Adelabu noted, calling for public sensitisation campaigns to educate consumers on tariff realities.
Dr. Joy Ogaji, CEO of APGC Power, highlighted systemic obstacles confronting GenCos, ranging from chronic payment defaults to erratic gas supply and forex volatility. She explained that the naira’s depreciation—from ₦157/$1 in 2013 to over ₦1,600/$1—has crippled GenCos’ operational budgets and loan repayments.
“GenCos have absorbed unsustainable risks, from frequent grid collapses to burdensome taxes, while remaining patriotic in their service delivery,” Ogaji said.
As part of the government’s rescue strategy, Adelabu outlined plans for regulatory reviews, market stabilisation initiatives, and policy reforms to ensure the long-term sustainability of the sector. He also urged power companies to partner in nationwide advocacy campaigns promoting energy efficiency and public awareness on tariff reforms.
With the President’s intervention imminent, stakeholders and citizens alike are hopeful that decisive action will finally end Nigeria’s perennial power crises.
