PowerPlant

President Bola Tinubu is set to meet with electricity generation company (GenCos) leaders to address the ₦4 trillion debt threatening the stability of Nigeria’s power sector.

The move follows a high-level meeting between the Minister of Power, Adebayo Adelabu, and the leadership of GenCos in Abuja last week. In a statement issued by the minister’s spokesperson, Bolaji Tunji, the federal government pledged to begin urgent payments to prevent a sector-wide collapse.

Adelabu assured the GenCos of the government’s commitment to pay a substantial portion of the debt immediately in cash, while the remainder would be settled using promissory notes within six months. “We recognise the urgency of this matter,” he said. “The government is committed to resolving this debt to stabilise the sector and prevent further crises.”

The meeting was led by Col. Sani Bello (rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), who warned that liquidity challenges had crippled operations, with companies unable to maintain infrastructure or access credit. “Without urgent intervention, the entire power ecosystem could collapse,” he warned.

Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, saying, “Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Adelabu acknowledged that systemic issues, such as erratic gas supply, grid instability, and foreign exchange volatility, have worsened the sector’s woes. He advocated for a fully liberalised power market and urged Nigerians to embrace cost-reflective tariffs with targeted subsidies for the vulnerable.

Dr Joy Ogaji, CEO of APGC, highlighted challenges including non-payment by the market, the naira’s depreciation, and unsustainable operational risks. She emphasised the urgent need for reforms to ensure sector viability.

Adelabu outlined plans for regulatory reviews, reduction of excessive levies, and public awareness campaigns to drive energy efficiency and support market reforms.