Photo File: National Power Grid

The presidency has begun internal processes to settle the ₦2 trillion legacy debt owed to electricity generation companies (GenCos), aiming to ease the ongoing liquidity crisis in Nigeria’s power sector.

Speaking at the second 2025 Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting in Abuja, a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, confirmed that discussions with the Debt Management Office and the Coordinating Minister of the Economy are ongoing.

“We are empathetic to what GenCos are facing,” she said. “We’re exploring alternative debt instruments, and internal approvals are currently underway.”

While she did not give a definitive date, Onagoruwa said, “I hope by the next NESI meeting, I’ll be able to share a clear update.”

The development follows GenCos’ warning that unpaid debts have exceeded ₦4 trillion. The Senate Committee on Power has also flagged concerns over rising monthly shortfalls, reportedly at ₦200 billion.

Stakeholders welcomed the government’s intervention and expressed optimism that it would support broader reforms across the power value chain.