The Minister of Power, Mr Adebayo Adelabu on Sunday said that a meeting has been scheduled between President Bola Tinubu and the leadership of the Power Generation Companies(GenCos) over a N4-trillion debt.
Mr Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations to the minister of power said this in a statement in Abuja on Sunday.
According to Adelabu, the planned meeting with President Tinubu aims to chart a viable course for resolving the debt
Adelabu assured that the Federal Government would immediately pay a significant portion of the debt, while the balance would be settled using financial instruments such as promissory notes within six months.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu said.
Acknowledging the government’s own role in the sector’s challenges, Adelabu pledged not only to clear the debt backlog but also to implement structural reforms that would remove operational bottlenecks.
He emphasised the need for full liberalisation of the power sector and called for the adoption of cost-reflective tariffs.
“Citizens must pay the appropriate price for the energy consumed.
“The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians, but we must realise that our economy cannot sustain blanket subsidies indefinitely,” he said.
The minister also unveiled plans to review existing regulations to lower levies and enhance market stability.
He urged GenCos to partner with the government in raising public awareness on efficient electricity use and tariff realities.
The GenCos were led by Col. Sani Bello(Rtd), Chairman of Mainstream Energy Solutions, and who is also the Chairman of Association of Power Generating Companies.
Bello warned that persistent liquidity challenges had left GenCos unable to service loans or maintain critical infrastructure.
“Without urgent intervention, the entire power ecosystem could collapse,” he said.
Mr Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency.
He said that reliable power supply was fundamental to the survival of industries, homes, and health facilities.
Mrs Joy Ogaji, Chief Executive Officer (CEO) of Association of Power Generation Companies, listed the systemic challenges undermining GenCos, including chronic payment defaults, erratic gas supply, and forex instability.
She lamented the steep depreciation of the naira—from ₦157/$1 in 2013 to ₦1,600/$1 in 2024. saying it had devastated GenCos’ ability to meet maintenance obligations and repay loans.
“GenCos have borne unsustainable risks from grid failures to unproductive taxes while remaining patriotic,” she said.(NAN)
