N4.7tn Debt: Power Firms Urge Urgent Meeting with President Tinubu
Electricity generation companies (Gencos) are pressing for an expedited meeting with President Bola Tinubu to address the growing ₦4.7 trillion debt owed to them by the Federal Government.
While no date has been confirmed, the Gencos are calling for the meeting to happen “as soon as possible”, citing the urgent financial crisis threatening the stability of Nigeria’s power sector.
Speaking with The PUNCH, Dr. Joy Ogaji, Managing Director and CEO of the Association of Power Generation Companies, expressed cautious optimism about the government’s pledge to settle the debt. She confirmed that the companies had formally submitted their demands to the Federal Government.
The urgency follows a high-level meeting in Abuja between the Minister of Power, Adebayo Adelabu, and key Genco stakeholders. Fears of a potential national grid collapse—due to deepening liquidity problems—prompted the government to announce plans for Tinubu to meet with the generation companies soon.
In a statement, Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, said the government had resolved to pay part of the outstanding debt immediately, with the balance to be cleared over six months using financial instruments such as promissory notes.
Ogaji, who attended the meeting with Adelabu, highlighted the severe challenges facing the Gencos, including erratic gas supply, chronic payment defaults, and volatile exchange rates. She noted that the drastic depreciation of the naira—from N157/$1 in 2013 to N1,600/$1—had significantly impacted their ability to maintain operations and repay loans.
“Gencos have shouldered enormous risks—from grid instability to excessive taxes—yet we have remained committed to national service,” Ogaji said.
The Gencos have warned that the unpaid debt, which includes N2tn for electricity supplied in 2024 and N1.9tn in legacy obligations, has crippled their operations and investment capabilities.
Power Minister Adelabu acknowledged the critical situation, stressing the need for immediate cash payments to the Gencos. “Let’s start by paying a substantial portion in cash and use promissory notes for the rest,” he proposed.
He described the debt crisis as a “national emergency,” emphasizing the government’s commitment to stabilizing the sector and preventing a collapse.
Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and the Association of Power Generating Companies, warned that continued delays in addressing the debt could lead to the total collapse of the power industry.
Echoing the concern, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, added, “Power is critical to everything—homes, industries, hospitals. We can’t allow this sector to fail.”
