FG has intensified move to pay ₦4 trillion power sector debt to GenCos.
NewsOnline Nigeria reports that the Minister of Power, Adebayo Adelabu, has revealed that President Bola Tinubu is expected to meet with the leadership of Nigeria’s power-generating companies (GenCos) as part of an emergency effort to address the ₦4 trillion debt threatening to cripple the country’s electricity supply chain.
This Nigeria news platform understands that the move follows a high-level meeting on Tuesday, April 29, 2025, between Adelabu and chairmen of GenCos in Abuja, amid mounting fears of a possible collapse of the national grid due to liquidity constraints in the sector.
Gencos had warned the Federal Government about the continued accumulation of debts now totalling over ₦4 trillion.
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In a statement issued on Sunday, May 4, 2025 by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, Adelabu said the Federal Government had resolved to settle a substantial portion of the debt immediately while the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He said this would be proposed in a planned meeting between Tinubu and GenCos’ leadership.
Adelabu emphasised the Federal Government’s determination to prevent a collapse of the power sector, describing the situation as a national emergency.
He said, “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.
“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis.”