₦airaland Forum

President Bola Tinubu is expected to meet with the leadership of Nigeria’s power-generating companies as part of an emergency effort to address the N4tn debt threatening to cripple the country’s electricity supply chain.

The move follows a high-level meeting on Tuesday between the Minister of Power, Adebayo 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, according to a statement from the power ministry on Sunday.

The government pledged immediate action to reduce the N4tn debt owed to power generation companies.

The PUNCH earlier reported that Gencos had issued a warning to the Federal Government over the continued accumulation of debts now totaling over N4tn.

The companies said they were currently owed N2tn for power supplied in 2024 and N1.9tn in legacy debts.

The statement by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, stated that 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 meeting being planned between President Bola Tinubu and the Gencos’ leadership.

“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,” Adelabu said.

He emphasised the Federal Government’s determination to prevent a collapse of the power sector, describing the situation as a national emergency.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.


When questioned on a likely date for the meeting, the media aide said, “I can’t say yet,” explaining that discussions were still ongoing among relevant parties.

The Gencos were led by the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), who warned that the sector faced a looming collapse due to the mounting debt and persistent liquidity challenges.

Bello noted that the debt burden had crippled operations and limited access to funding for maintenance and infrastructure upgrades. “Without urgent intervention, the entire power ecosystem could collapse,” he said.

Echoing his concerns, the Chairman of Egbin Power and First Independent Power Limited, Kola Adesina, said, “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”


Adelabu acknowledged the role of systemic failures and policy inconsistencies in the sector’s woes, adding that the government was not only focused on debt repayment but also committed to pushing reforms that would ease operational challenges.

He advocated for a full liberalisation of the electricity market and called on Nigerians to embrace cost-reflective tariffs, stressing that subsidies were no longer sustainable in the long term. “Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidy for economically disadvantaged Nigerians,” he stated.

The CEO of APGC, Dr Joy Ogaji, also outlined the challenges bedevilling the GenCos, including erratic gas supply, persistent defaults on payments, and foreign exchange volatility. She noted that the dramatic depreciation of the naira—from N157/\$1 in 2013 to N1,600/\$1—had severely affected maintenance budgets and loan repayments.

“Gencos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.

Adelabu disclosed that plans were underway to implement regulatory reforms aimed at enhancing market stability and reducing levies. He urged Gencos to partner with the government in creating public awareness on electricity consumption, efficient usage, and tariff realities.

Source: https://punchng.com/Tinubu-to-meet-Gencos-over-N4tn-electricity-debt

Best way to fix the liquidity issue in the sector is for Nigerians, rich and poor, to realize that electricity is expensive and to pay whatever price your disco sets , not the price the disco is forced by the government to set.

That is the only way to get power fixed. It is the only way to attract investment to the sector because no investor will come when roi is not guaranteed

Many of us owe NEPA (lol), many of us bypass meters, many of us pay below the cost of power , and we expect the sector to be rolling in profit? You expect them to give you 24 hour a day power when you don't pay the bills?

Ok. O.

Yes , there were countries with free power,.who at the end were taking loans to keep the power free. Lol.


If you want an idea of our power issues, Google for the Pwc report: solving the liquidity crunch in the power sector. Very informative.


And if you abuse me, mods will hear. Be polite. I did not abuse you

There was a country...... What is a shame. Kenya is doing better than Nigeria.

N4tn debt plenty oo

Tinubu might be planning for another electricity tariff hike... Keep watching, the guy is a genius when it comes to matters like this.

Nigerians are d only citizens that don't want to pay for anything yet they want electricity to be FREE and they are fast to compare Nigeria to US and UK with constant electricity 🔌

They have forgotten they pay for everything they use 100% light water date gass etc 🤔

But here in naija we want it to be free and if electricity is not stable we will still abuse the government 😂

Who cause Nigeria 🤔

Fg wey don do solar . .

This meeting na wash.
Make everybody find him way o
This government no send anybody. Including zombies.

Davido papa dem and ote$
Electricityhas money than oil sometimes

We pray the meeting yields positives. Amen.

Where did the debt come from?
Are the discos not getting revenue from their services?

Osiris12:
Fg wey don do solar . .

This meeting na wash.
Make everybody find him way o

Yeah, because Aso Rock is on BAND A, and Aso Rock is not just the presidential villa, it is a large complex of offices and housing.

And they can't keep up with the debts. They already owe 4trn naira

Hence solar.

Still cheating in my book, but sadly not illegal. They are abandoning the ship to the rest of us poor sailors.

iampeterben:
We pray the meeting yields positives. Amen.

which meeting has yielded positive result in this administration?

Useless meeting as usual


A man that failed woefully in all fronts as Lagos governor. He knows absolutely nothing about governance, just pure propaganda, lies and mediocrity.

After privatization notthing change

Osiris12:
which meeting has yielded positive result in this administration?

Let just try and be positive for ones.

After banditry A. Nothing is working, the earlier we all sit to address this. Tinubu is TPain.

iampeterben:
Let just try and be positive for ones.

you should mention

cassidy1996:
After privatization notthing change

Because unlike the telecoms privatisation, discos and gencos were not allowed to set their prices

Also, discos and gencos inherited a customer base, where a large segment of consumers were not paying for the power they used.

All that in combination, plus a government struggling to pay subsides, and you have a sector that has been operating at a loss. Even where it makes a 'profit', the amount owed it dwarfs the profit...effectively meaning they lose money.

Na so

Reminds me of nnpcl

phemmie06:
Where did the debt come from?
Are the discos not getting revenue from their services?

More u look less u see

How did debt get to 4 trillion? How much was their actual capital expenditures and running cost in the 4 trillion?

How much is their outrageous profits in the name of subsidized rates?

cassidy1996:
After privatization notthing change

Because I don't understand what the people want to do with 4 trillion

jaxxy:
How did debt get to 4 trillion?

Good question

nairalanda1:
Best way to fix the liquidity issue in the sector is for Nigerians, rich and poor, to realize that electricity is expensive and to pay whatever price your disco sets , not the price the disco is forced by the government to set.

That is the only way to get power fixed. It is the only way to attract investment to the sector because no investor will come when roi is not guaranteed

Many of us owe NEPA (lol), many of us bypass meters, many of us pay below the cost of power , and we expect the sector to be rolling in profit? You expect them to give you 24 hour a day power when you don't pay the bills?

Ok. O.

Yes , there were countries with free power,.who at the end were taking loans to keep the power free. Lol.


If you want an idea of our power issues, Google for the Pwc report: solving the liquidity crunch in the power sector. Very informative.


And if you abuse me, mods will hear. Be polite. I did not abuse you

Doesn't work that way anywhere in the world not even the developed countries.

phemmie06:
Where did the debt come from?
Are the discos not getting revenue from their services?

are the gas they're buying free

adenigga:
Source: https://punchng.com/Tinubu-to-meet-Gencos-over-N4tn-electricity-debt

Until the Minister Adebayo Adelabu is removed and replaced with a more competent professional, there won't be improvement in the power sector of the country.

The man is a mitigated disaster who has no business holding the portfolio, apart from political considerations. He has no experience and can't interpret the professional inputs required to improve the sector.

Go Adelabu Go!

morikee:
Doesn't work that way anywhere in the world not even the developed countries.

It does.

Ivory coast deregulated its power sector in the early 1990's. Before then, it was suffering grid collapses like we did. Now it does not.

Egypt had subsidised power for years, and it made their debt higher. Now they no longer do.

Meanwhile the USSR had free power supply for a long time. It was also costing it so much in money that from the 1970's they were on loan support from the IMF and the G7. And of course, the debts got too much eventually.

At the end, power is a business, and it has to be run as a business.

Maybe, when power has been run as a business for a long time, and power is stable, they could afford to bring prices down.

TO.
TO..
What about "HAS MET.."?

nairalanda1:
Best way to fix the liquidity issue in the sector is for Nigerians, rich and poor, to realize that electricity is expensive and to pay whatever price your disco sets , not the price the disco is forced by the government to set.

That is the only way to get power fixed. It is the only way to attract investment to the sector because no investor will come when roi is not guaranteed

Many of us owe NEPA (lol), many of us bypass meters, many of us pay below the cost of power , and we expect the sector to be rolling in profit? You expect them to give you 24 hour a day power when you don't pay the bills?

Ok. O.

Yes , there were countries with free power,.who at the end were taking loans to keep the power free. Lol.


If you want an idea of our power issues, Google for the Pwc report: solving the liquidity crunch in the power sector. Very informative.


And if you abuse me, mods will hear. Be polite. I did not abuse you

Give everyone meter. Simple

nairalanda1:
It does.

Ivory coast deregulated its power sector in the early 1990's. Before then, it was suffering grid collapses like we did. Now it does not.

Egypt had subsidised power for years, and it made their debt higher. Now they no longer do.

Meanwhile the USSR had free power supply for a long time. It was also costing it so much in money that from the 1970's they were on loan support from the IMF and the G7. And of course, the debts got too much eventually.

At the end, power is a business, and it has to be run as a business.

Maybe, when power has been run as a business for a long time, and power is stable, they could afford to bring prices down.

well they won’t make that money even if they increase the price because Nigerians are simply too poor to pay.