By Tochukwu Bliss, Abuja
Power generation companies (GenCos) have been scheduled to meet with President Bola Tinubu, aimed at resolving the over N4-trillion debt owed by government agencies to make the electricity supply industry more competitive.
The Minister of Power, Adebayo Adelabu, in a statement by his spokesperson, Bolaji Tunji, yesterday, said
the planned meeting with Mr President aims to chart a viable course for resolving the mounting debt, which has severely strained Nigeria’s power infrastructure.
Mr Adelabu was said to have also assured that the federal government would immediately pay a significant portion of the debt, while the balance would be settled using financial instruments such as promissory notes within six months.
He warned of an impending collapse in the sector if swift interventions are not made, saying: “We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis.”
He assured the GenCos that the federal government would prioritise an immediate cash payment of a significant portion of the debt, while the outstanding balance would be cleared through promissory notes and other financial instruments within six months.
Acknowledging the government’s own role in the sector’s challenges, the Minister said the government will not only clear the debt but also implement structural reforms that would remove operational bottlenecks.
He emphasised the need for full liberalisation of the power sector and called for the adoption of 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, but we must realise that our economy cannot sustain blanket subsidies indefinitely,” he said.
We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis.
Mr. Adelabu also unveiled plans to review existing regulations to lower levies and enhance market stability, and rallied the GenCos to partner with the government in raising public awareness on efficient electricity use and tariff realities.
The companies, represented by the Chairman, Association of Power Generating Companies (APGC) Col. Sani Bello (Rtd), warned that persistent liquidity challenges have left GenCos unable to service their loans or maintain critical infrastructure.
Mr. Bello, also the Chairman of Mainstream Energy Solutions, cautioned that “Without urgent intervention, the entire power ecosystem could collapse.”
Chairman of Egbin Power and First Independent Power Limited, Kola Adesina, described the situation as a national emergency.
He said that reliable power supply was fundamental to the survival of industries, homes, and health facilities.
Chief Executive Officer, APGC, Joy Ogaji, listed the systemic challenges undermining GenCos, to include chronic payment defaults, erratic gas supply, and foreign exchange (FX) instability, saying: “GenCos have borne unsustainable risks from grid failures to unproductive taxes while remaining patriotic.”
She also decried the steep depreciation of the naira—from N157/$1 in 2013 to N1,600/$1 in 2024. saying it has devastated GenCos’ ability to meet maintenance obligations and repay loans.
