Tinubu Government has moved to clear Nigeria’s ₦2 trillion electricity debt.
NewsOnline Nigeriareports that President Bola Ahmed Tinubu’s government has reiterated its commitment to settle the country’s ₦2 trillion legacy debt owed to electricity generation companies by the conclusion of the third quarter of 2025.
A spokesperson for the Special Adviser to the President on Energy, Eriye Onagoruwa, conveyed this promise on Monday during the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, which the Nigerian Electricity Regulatory Commission (NERC) organised.
Onagoruwa stated that the presidency acknowledges the critical need to resolve the debt overhang, which has burdened GenCos and hindered electricity supply across the nation, potentially resulting in the shutdown of the country’s power sector.
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She further elaborated that President Tinubu’s administration is exploring alternative debt instruments in light of its current fiscal limitations.
“We are empathetic to what GenCos are facing,” she said. “We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort. Internal approvals are currently underway,” she stated.
The ₦4 trillion gas debt had become a lingering challenge in Nigeria’s power sector despite promises of its resolution.
In April of 2025, Generation Companies (GenCos) threatened to shut down Nigeria’s power sector due to the outstanding ₦4 trillion debt owed to market operators.
Previously, the Minister of Power, Adebayo Adelabu, had expressed a commitment to settle 50 per cent of the ₦4 trillion debt by the year’s end.
At the same time, stakeholders in the power sector cautioned that the federal government must take decisive action to prevent the impending collapse of the nation’s power sector.
NewsOnline Nigeria reports that despite the privatisation of the Nigerian power sector more than ten years ago, it continues to face significant issues such as inconsistent power supply, vandalism, inadequate infrastructure, insufficient investment, a gap in electricity access, grid failures, and various other challenges.
