Trending 
President Bola Tinubu is set to meet with the leadership of Nigeria’s electricity generation companies as part of urgent efforts to tackle a ₦4 trillion debt threatening to paralyse the nation’s power supply system.
The proposed engagement follows a high-level meeting held last Tuesday in Abuja between the Minister of Power, Adebayo Adelabu, and the chairmen of the Generation Companies (GenCos), amid growing concerns over a possible national grid collapse due to ongoing liquidity challenges in the sector.
According to a statement released on Sunday, May 4, 2025, by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the Nigerian government has committed to settling a significant portion of the debt immediately.
The remainder, he said, would be addressed through financial instruments such as promissory notes over the next six months.
“This is the proposal we will take forward in the meeting being planned between President Bola Ahmed Tinubu and the GenCos’ leadership,” Adelabu stated.
Credit: The Guardian Newspaper
He stressed that a considerable amount must be paid in cash, with the balance to be structured into promissory notes.
“At the very least, let us settle a substantial portion now and then issue debt instruments for the rest,” he said.
Adelabu further described the situation as a national emergency, saying the government was determined to avert a collapse of the power sector.
“We understand the gravity of the situation. The government is wholly committed to resolving the debt crisis to stabilise the sector and avert further disruption,” he said.
The GenCos’ delegation was led by Col. Sani Bello (retd.), Chairman of Mainstream Energy Solutions and leader of the Association of Power Generating Companies, who warned of a potential collapse if urgent action is not taken.
He cited the worsening liquidity crisis and ballooning debt as the primary risks to the sector.
The GenCos warned the Nigerian government over an accumulated debt now exceeding ₦4 trillion, consisting of ₦2 trillion for power supplied in 2024 and ₦1.9 trillion in legacy debt.
