Abuja, Nigeria — President Bola Tinubu go sit down with leaders of Nigeria’s power-generating companies as part of emergency effort wey go tackle the N4 trillion debt wey dey threaten the country’s electricity supply chain. This move happen after high-level meeting wey occur on Tuesday between the Minister of Power, Adebayo Adelabu, and the chairmen of the Generation Companies (Gencos) in Abuja, as dem de fear say national grid fit collapse because of liquidity wahala for the power sector, according to statement from the power ministry wey land on Sunday.
The government yan say dem go take immediate action to begin to reduce the N4 trillion debt wey dem owe power generation companies. Reports from The PUNCH don earlier reveal say Gencos don give Federal Government serious warning over the way wey dem dey accumulate this debt wey don now reach N4 trillion. Dem talk say as wey dey run 2024, dem don collect N2 trillion for power supply, plus N1.9 trillion wey na legacy debts.
Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister, confirm say Federal Government don vow to clear part of the debt wey get shakara, while dem go use financial instruments like promissory notes to clear the remaining balance within the next six months. He say this one go dey proposed for the meeting wey dem dey plan between President Bola Tinubu and the Gencos’ leaders.
“We must 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,” Adelabu talk. Him also emphasize say the Federal Government dey serious to prevent the power sector from collapse, describe the matter as national emergency. “We sabi say we need to act fast. Government dey committed to resolve this debt to stabilize the sector and stop another crisis from happening,” he add.
When dem ask for when the meeting go hold, the media aide response, “I no fit talk yet,” as he explain say discussion still dey go on among all parties wey concern. The Gencos dey led by Col. Sani Bello (retd), the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies. Bello warn say the sector dey face serious collapse due to the increasing debt and persistent liquidity challenges. He talk say the debt don reduce their operations and dey stop dem from accessing funds for maintenance and infrastructure upgrades. “Without urgent intervention, the entire power ecosystem fit collapse,” he stress.
Kola Adesina, the Chairman of Egbin Power and First Independent Power Limited, echo Bello concerns, say, “This na national emergency. Everything dey depend on power—industries, homes, hospitals. We no fit allow the sector fail.” Adelabu don also acknowledge the role of systemic wahala and policy inconsistencies for the power sector. He add say the government dey focus on debt repayment and dey ready to drive reforms wey go ease operational challenges. He dey call for full liberalization of the electricity market and urge Nigerians to accept cost-reflective tariffs, since subsidies no dey sustainable long term.
“Citizens go need to pay the correct price for the energy wey dem dey consume. Federal Government go continue to provide targeted subsidy for those wey dey suffer,” he explain further. Dr. Joy Ogaji, the CEO of APGC, still highlight the challenges wey dey affect the Gencos, like erratic gas supply, regular defaults on payments, and the wahala of foreign exchange. She point out say naira don fall badly—from N157/$1 in 2013 to N1,600/$1—wey don greatly affect their maintenance budgets and loan repayments. “Gencos don dey carry unsustainable risks—from grid failures to unwanted taxes—while dem dey remain patriotic,” she conclude.
Adelabu disclose say dem dey plan to implement regulatory reforms wey go enhance market stability and reduce levies. Him dey urge Gencos to work together with government to create public awareness on electricity consumption, efficient usage, and the real tariff situation.
