By Peter Omopo
President Bola Tinubu is set to hold a crucial meeting with the leadership of Nigeria’s electricity generation companies (Gencos) as the Federal Government races to address a mounting N4 trillion debt threatening to paralyse the country’s power supply chain.
This follows an emergency meeting last Tuesday between the Minister of Power, Adebayo Adelabu, and the Gencos’ chairmen in Abuja. The meeting, according to a Sunday statement from the power ministry, was convened amid rising concerns that persistent liquidity constraints could lead to a collapse of the national grid.
The Gencos have warned that the continued accumulation of unpaid bills—currently standing at over N4 trillion—poses an existential threat to their operations. Of the total debt, approximately N2 trillion is owed for power supplied in 2024, while N1.9 trillion represents legacy debts carried over from previous years.
In a statement issued by the Minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the Federal Government said it was preparing to settle a large portion of the debt immediately and planned to clear the remainder through promissory notes over the next six months.
“There is a need to pay a substantial amount of the debt in cash,” Adelabu was quoted as saying. “At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest.”
The minister described the situation as a national emergency and reiterated the government’s commitment to stabilising the power sector and ensuring energy security for Nigerians.
“We recognise the urgency of this matter,” he said. “The government is committed to resolving this debt to stabilise the sector and prevent further crisis.”
The upcoming meeting between President Tinubu and the Gencos’ leadership is expected to finalise the debt repayment strategy and explore long-term reforms to ensure sustainability in the power sector.
