In a significant move to stabilize Nigeria’s struggling power sector, the Presidency has begun internal approval processes aimed at clearing the ₦2 trillion legacy debt owed to electricity generation companies (GenCos). The debt resolution is expected before the end of the current quarter, according to a senior energy official.
This announcement was made during the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC) in Abuja.
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Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, emphasized the government’s commitment to resolving the power sector debt crisis.
“We are empathetic to what GenCos are facing. We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort,” Onagoruwa said.
Although no exact timeline was given, she noted that an official update is likely within the next three months, indicating progress may be shared at the next NESI Stakeholders Meeting.
GenCos Owed Over ₦4 Trillion – Naija Blog Daily Reports
Previously, Naija Blog Daily reported that generation companies warned the Federal Government about the rising electricity debt, which has now surpassed ₦4 trillion. The Senate Committee on Power has also expressed concern, stating that the government owes an average of ₦200 billion monthly to GenCos due to tariff shortfalls.
As of 2025, the government has yet to make any payments this year, pushing the current unpaid debt to about ₦800 billion, further worsening the liquidity crisis in the energy sector.
Stakeholders Discuss Sector Reforms and Electricity Market Stability
The high-level meeting brought together regulators, power sector operators, and policymakers to address key challenges, including:
- The Presidential Metering Initiative
- Creation of the Meter Asset Fund
- Establishment of the Nigerian Independent System Operator (NISO)
- Expansion of the multi-tier electricity market
- The role of State Electricity Regulatory Commissions under the Electricity Act 2023
The Acting MD of Nigerian Bulk Electricity Trading Plc (NBET), John Akinnawo, warned about potential market fragmentation as states begin asserting control over electricity regulation. He called on NISO to ensure policy alignment and system harmonization.
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NISO’s MD, Abdu Mohammed Bello, outlined the agency’s mandate, which includes improving grid coordination, market transparency, and system reliability across Nigeria’s evolving power landscape.
Sector-Wide Optimism as Presidency Steps In
Stakeholders welcomed the Federal Government’s intervention and expressed hope that the combination of financial resolution and policy reforms would bring long-term stability to Nigeria’s power sector.
With mounting pressure on the government and heightened public expectations, all eyes are now on the Presidency’s next steps in settling the GenCo debt and repositioning the electricity industry for sustainable growth.
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