The Federal Government has promised to urgently address the N4 trillion debt affecting Nigeria’s power generation sector.
The assurance came to the fore at a high-stakes talks between Power Minister Adebayo Adelabu and Chairmen of Generating Companies of Nigeria (GenCos) in Abuja on Tuesday,
Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations to the Minister of Power,said in a statement.
The statement explained that move aims to avert an imminent collapse of the power infrastructure in the country.
The statement quoted the Minister to have assured GenCos executives that the government would prioritize immediate payment of a significant amount out of the N4b debt.
The balance would be defrayed through other debt instruments,it said,adding that this would be proposed in a meeting being planned between President Bola Ahmed Tinubu and GenCos’ leadership.
He said:“There is need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instrument in promissory notes to pay the rest”.
He expressed government’s commitment to resolving this debt to stabilize the sector and prevent further crisis, stressing that President Bola Tinubu would meet with GenCos leadership to fast-track the process.
The statement disclosed that the GenCoS were led by Chairman of Mainstream Energy Solutions who is also the Chairman of Association of Power Generating Companies (APGA), Col. Sani Bello, who had earlier raised the alarm over the sector’s dire state.
He the N4 trillion debt as a critical threat to operations and warned that liquidity challenges had left GenCos unable to secure loans or maintain infrastructure.
“Without urgent intervention, the entire power ecosystem could collapse,” he added.
Speaking, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the urgency of the payment of the debt.
He said: “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”
The Minister acknowledged the government’s role in the sector’s struggles, pledging to not only clear the debt but also implement reforms to ease operational bottlenecks.
He stressed the need for full liberalization of the power sector, urging Nigerians to embrace cost-reflective tariffs.
He promised that the Federal Government will continue to provide targeted subsidy for economically- disadvantaged Nigerians.
He added:”We have to understand that our economy cannot sustain subsidies indefinitely”.
Dr. Joy Ogaji, CEO of APGC Power, noted that the naira’s plunge from ₦157/$1 in 2013 to ₦1,600/$1 had devastated maintenance budgets and loan repayments. “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
