President Bola Ahmed Tinubu is set to meet with the leadership of Nigeria’s electricity generating companies (GenCos) as the Federal Government scrambles to avert a potential collapse of the national power grid over a ballooning N4 trillion debt.
This comes after an emergency meeting in Abuja between the Minister of Power, Adebayo Adelabu, and the chairmen of several GenCos, amid growing fears that liquidity issues could destabilize the entire electricity supply chain.
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According to a statement released Sunday by Adelabu’s media aide, Bolaji Tunji, the government has resolved to pay off part of the debt in cash. At the same time, the balance will be cleared using financial instruments such as promissory notes over the next six months.
“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest,” Adelabu said.
He stressed that the Federal Government is treating the situation as a national emergency and is fully committed to stabilizing the power sector before it reaches a breaking point.
“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” he added.
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The GenCos were represented by Col. Sani Bello (retd.), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC). Bello warned that the sector is on the brink of collapse due to massive unpaid bills, including N2 trillion owed for power supplied in 2024 and N1.9 trillion in legacy debt.
Naija Blog Daily earlier reported that the GenCos had strongly warned the Federal Government over continued debt accumulation without corresponding settlement.
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