Nigeria’s President, Bola Ahmed Tinubu is scheduled to hold a crucial meeting with the heads of the country’s power generation companies, as the country grapples with a staggering N4 trillion debt threatening to destabilize the electricity sector.
This planned engagement comes on the heels of a strategic meeting held last Tuesday in Abuja between the Minister of Power, Adebayo Adelabu, and executives of the generation companies (GenCos).
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The discussion was driven by increasing concerns about the financial strain within the sector and the risk of a national grid failure stemming from severe cash flow issues.
In a statement released on Sunday by Bolaji Tunji, Special Adviser to the Minister on Strategic Communications and Media Relations, the government disclosed a decision to pay a significant part of the outstanding debt immediately.
The rest, according to the statement, would be addressed over the next six months using promissory notes and similar financial instruments.
This repayment strategy is expected to be part of the proposals in the upcoming talks between President Tinubu and GenCos’ leadership.
“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 stated.
Highlighting the urgency of the situation, the minister described the financial crisis in the power sector as a matter of national concern.
“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” he said.
The GenCos’ delegation was led by Colonel Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies.
During the meeting, Bello reiterated that the sector is on the brink of collapse due to escalating debts and prolonged liquidity issues.
According to reports, GenCos had formally notified the Federal Government of their worsening financial position, with total debts now exceeding N4 trillion.
This figure includes N2 trillion owed for power supplied in 2024 and an additional N1.9 trillion in legacy obligations.
