GenCos to meet Tinubu over N4tr debt

The minister of Power, Adebayo Adelabu has proposed a meeting between President Bola Ahmed Tinubu and owners of electricity Generating Companies (GenCos) on ways to resolve the N4tr debt the government is owing the utility companies. In a statement, the minister said this is to show its commitment in paying the debt in cash and […]

The minister of Power, Adebayo Adelabu has proposed a meeting between President Bola Ahmed Tinubu and owners of electricity Generating Companies (GenCos) on ways to resolve the N4tr debt the government is owing the utility companies.

In a statement, the minister said this is to show its commitment in paying the debt in cash and other instruments

The commitment was made following high-stakes talks between Power Minister Adebayo Adelabu and Chairmen of Generating Companies of Nigeria (GenCos) in Abuja.

The statement signed by the media aide to the minister, Bolaji Tunji, said the move aims to avert an imminent collapse of the power infrastructure in the country.

Recall that the GenCos had threated to shutdown operations of the debt was not paid.

But the Minister  assured GenCos executives that the government would prioritize immediate payment of a significant amount out of the N4tr debt while the balance would be defrayed through other debt instruments.

“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 assured of the payment of the outstanding balance within six months through  financial instruments such as promissory notes.

“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” Adelabu stated, adding that President Bola Tinubu would meet with GenCos leadership to fast-track the process.

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 sounded the alarm over the sector’s dire state, citing the N4 trillion debt as a critical threat to operations. He  also warned that liquidity challenges had left GenCos unable to secure loans or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he stressed.

Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the urgency: “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Adelabu 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 emphasized the need for full liberalization of the power sector, urging Nigerians to embrace cost-reflective tariffs. “Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidy for  economically- disadvantaged Nigerians. We have to understand that our economy cannot sustain subsidies indefinitely,” he asserted, calling for public sensitization campaigns to drive compliance.

Dr. Joy Ogaji, CEO of APGC Power, detailed systemic challenges undermining GenCos, including chronic payment defaults, erratic gas supply, and foreign exchange volatility. She 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.

The Minister outlined plans to transition the sector toward sustainability, including regulatory reviews to reduce levies and enhance market stability. He also urged GenCos to collaborate on advocacy efforts to educate Nigerians on efficient electricity use and tariff realities.