₦airaland Forum

STATEHOUSE PRESS RELEASE

PRESIDENT TINUBU MEETS CHAIRMEN OF GENCOS, PLEDGES TO RESOLVE LONGSTANDING DEBT CLAIMS

President Bola Tinubu on Friday appealed to power generation companies (GENCOs) to give the federal government more time to complete the verification and validation of longstanding debts owed to them.

During a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja, the President assured them of his administration's commitment to resolving the liquidity challenges in the power sector.

The Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed that a ₦4 trillion bond programme has received anticipatory approval from President Tinubu to address the liquidity shortfall in the sector.

President Tinubu acknowledged the historic liabilities inherited from previous administrations and pledged transparency and fairness in addressing them:

"I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion."

The President emphasised the need for patience from GENCOs and financial institutions, noting that government agencies are actively engaging audit and legal firms to scrutinise the claims.

"We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers," he said.

While reaffirming his belief in a market-driven electricity sector, the President said the industry's long-neglected legacy issues are now receiving the attention they deserve.

"This is a longstanding issue that is now being dealt with. I know how much we have been able to save on fuel subsidies. We introduced the alternative, CNG, to bring relief back to the people."

President Tinubu also emphasised the government's commitment to creating a stable investment environment and avoiding extreme measures, such as bank asset foreclosures, against the generation companies.

"To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let's persevere together."

Describing electricity as "the most important discovery of humanity in the last 1,000 years," the President reaffirmed that access to electricity is fundamental to economic growth and human dignity.

The Special Adviser to the President, Ms. Verheijen, attributed the liquidity crisis to "a combination of unfunded tariff shortfalls and market shortfalls" that have built up over a decade.

She stated that as of April 2025, the Federal Government is carrying a verified exposure of ₦4 trillion in debts to GENCOs, an accumulation dating back to 2015.

"We have since sat with 27 GENCOs—not all of them are here today—and reviewed their PPAs and gas sales agreements to understand the legitimacy of their claims. The GENCOs claimed about ₦4 trillion from 2015 to the end of 2023," she said.

According to her, the Nigerian Bulk Electricity Trading Company (NBET)—the agency that contractually mediates between GENCOs and the government—has validated ₦1.8 trillion of these claims so far.

"Since that period, we have had ₦200 billion in unfunded subsidies that have accumulated the federal government's liability.

"So, as of April 2025, the total exposure that we are carrying at the moment is ₦4 trillion," she added.

However, Ms. Verheijen cautioned that the figure remains subject to downward revision, pending final validation.

"While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement of agreements. Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO," she explained.

The Minister of Power, Chief Adebayo Adelabu, commended President Tinubu for the attention given to the power sector, stating that the administration's reforms have restored investor confidence and improved performance across the electricity value chain.

"Your Excellency, your presence at this meeting is a clear testament to your unwavering commitment to the sustainability, stability, and long-term development of Nigeria's power sector. Under your leadership, we have recorded critical milestones in less than two years," the Minister said.

Adelabu said the Tinubu administration signed into law the Electricity Act, 2023, which decentralises and liberalises the electricity market. This was the first legislation signed by the President upon assuming office.

He noted that the administration has launched Nigeria's first Integrated National Electricity Policy in 24 years to drive coherence in sector planning and delivery.

He disclosed that over $2 billion in new private capital has been attracted to expand electricity access nationwide. At the same time, the sector's annual revenue has grown by 70 per cent—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—resulting in a reduction of government subsidy obligations by over ₦700 billion.

He added that installed generation capacity has grown from 13,000 MW to 14,000 MW, with an all-time peak generation of 5,801 MW and a record maximum daily energy delivery of 120,370 MWh, achieved on March 4, 2025.

According to him, there has been no national grid collapse in 2025, a direct result of interventions under the Presidential Power Initiative, which has added over 700MW of transmission capacity.

He reported significant progress in narrowing Nigeria's metering gap through the ₦700 billion Presidential Metering Initiative, funded via FAAC, and the World Bank-supported Distribution Sector Recovery Programme (DISREP), which has already delivered 300,000 smart meters out of 3.45 million procured.

While acknowledging these strides, Adelabu cautioned that the sector is grappling with an urgent liquidity crisis that could undermine the sustainability of ongoing reforms and investments.

"Mr. President, given the grave implications of this debt overhang, including the risk of a nationwide shutdown of generation assets, I humbly seek your immediate support for defraying these obligations, even if partially, over a defined period," the Minister appealed.

He urged the President to continue supporting structural reforms to ensure a resilient and financially viable power market.

In separate remarks, business leaders Tony Elumelu and Kola Adesina appealed for urgent intervention to preserve operations and encourage further investment in the sector.

"Mr. President, we've come to you as a last hope. The generating companies are heavily indebted to banks, and foreclosure threats are real, not because we're not doing our jobs, but because the system owes us trillions," Elumelu said.

He commended the Tinubu administration for restoring the integrity of oil production and banking stability.

"Before you took office in 2023, we lost 97% of our daily oil production. Today, we are retaining 98%. That's transformation. Investors are seeing greater stability and predictability," he said.

On electricity, Elumelu added: "We don't need power to complete your transformation, we need power to enable it. Power is critical to unlocking Nigeria's full potential. We urge you to help solve this debt problem."

Adesina reiterated the need for immediate liquidity support while raising concerns over gas supply shortfalls.

"Liquidity is the oxygen of our business. Without urgent intervention, generation capacity will stall, and Nigeria's industrial and economic ambitions will be jeopardised.

"The plants in the Afam axis are underperforming because we have not paid gas suppliers. We propose unlocking 800 million cubic feet of gas through NLNG to boost supply to these power plants," he said.

The meeting was attended by the Chief of Staff to the President, Femi Gbajabiamila; the Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun; the Minister of Information and National Orientation, Alhaji Mohammed Idris; and other senior government officials, regulators, and stakeholders in Nigeria's electricity industry.

Bayo Onanuga

Special Adviser to the President

(Information & Strategy)

July 25, 2025

Tinubu pledges to settle power sector debts

July 25, 2025

President Bola Tinubu has assured power generation companies of the Federal Government’s commitment to settling outstanding debts, pending a thorough audit process.

The assurance was given on Friday during a meeting with the Association of Power Generation Companies at the State House, Abuja.

The meeting details were disclosed in a statement issued by Presidential Spokesperson, Mr Bayo Onanuga.

The delegation was led by retired Col. Sani Bello and included other key industry stakeholders.

Tinubu reiterated his commitment to resolving liquidity challenges affecting Nigeria’s electricity sector.

“I accept the liabilities of my predecessors, but only on credible and verifiable grounds.

“I must confirm the figures are authentic. This inheritance must not be cosmetic, but a tool for industrial and economic advancement,” Tinubu said.

He urged power firms and financial institutions to remain patient during the verification process.

“We are here now. Please inform your colleagues. Allow us time for proper validation of the numbers,” he added.

Tinubu emphasised support for a market-driven electricity sector and acknowledged unresolved legacy issues.

“This issue has lingered. We are now addressing it. We’ve saved significantly on fuel subsidies and introduced CNG to ease pressure on citizens,” he said.

He appealed to banks for cooperation in resolving financial constraints.

“To our banking partners, avoid foreclosures. Be prudent, but flexible. Let us endure this together,” he said.

Tinubu emphasised that stable electricity is essential to national growth and the well-being of citizens.

Special Adviser on Energy, Ms Olu Verheijen, said Tinubu approved a ₦4 trillion bond to ease power sector liquidity issues.

She attributed the crisis to years of unpaid tariff shortfalls and wide market gaps.

She noted the Federal Government owes a verified ₦4 trillion debt to GENCOs, dating back to 2015.

“We’ve met with 27 GENCOs to review their PPAs and gas agreements, validating the legitimacy of claims.

“GENCOs are claiming ₦4 trillion for the period 2015 to end of 2023,” she said.

She confirmed that NBET has so far validated ₦1.8 trillion of those claims.

“Additionally, ₦200 billion in unfunded subsidies has accumulated, increasing the government’s liability.

“As of April 2025, verified exposure stands at ₦4 trillion,” she said.

She warned that the debt figure might be adjusted following further assessments.

“The ₦4 trillion bond has anticipatory approval, subject to negotiation and agreement.

“Only verified debts will be included in the DMO’s final issuance,” Verheijen explained.

Minister of Power, Adebayo Adelabu, praised Tinubu’s leadership and recent sector reforms.

“Your presence today confirms your unwavering commitment to Nigeria’s power development.

“Under your leadership, we’ve achieved critical sector milestones in under two years,” he said.

He described the Electricity Act 2023 as a breakthrough for decentralising and liberalising the market.

The administration also introduced the first Integrated National Electricity Policy in 24 years.

Adelabu said over $2 billion in private capital was attracted for grid expansion projects.

He reported that revenue rose by 70%, from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.

This increase helped cut government subsidies by more than ₦700 billion.

Installed generation capacity reached 14,000 MW, with 5,801 MW achieved on March 4.

Daily energy delivery hit a record high of 120,370 megawatt-hours.

There was no national grid collapse in 2025, due to the Presidential Power Initiative.

This initiative added over 700 MW to transmission capacity.

He noted 300,000 smart meters were delivered under the ₦700 billion Presidential Metering Initiative and World Bank DISREP.

However, Adelabu warned that liquidity issues threaten to undo recent gains.

“The debt overhang could lead to a total shutdown of generation assets,” he said.

He urged the President to approve phased payments to GENCOs without delay.

He called for sustained structural reforms to stabilise the power sector.

Business leaders Tony Elumelu and Kola Adesina also urged swift government intervention.

“Mr President, the banks are threatening foreclosure. Not because of poor performance, but due to unpaid debts,” Elumelu said.

He praised Tinubu for restoring investor confidence and oil production.

“Before 2023, we lost 97 per cent of daily oil output. Today, we retain 98 per cent. That’s real progress,” Elumelu said.

Adesina also highlighted the urgent need for liquidity and a reliable gas supply.

“Liquidity is the lifeblood of power generation. Without it, Nigeria’s development will suffer,” Adesina said.

He stated that underperforming plants in Afam are lacking gas due to unpaid suppliers.

“We suggest unlocking 800 million cubic feet of gas via NLNG for plant supply,” he said.

The meeting was attended by top government officials, regulators, and stakeholders from the power sector.

Present were the Chief of Staff, Minister of Finance Wale Edun, and Minister of Information Mohammed Idris.

helinues:
There should be an agreement on how the power sector can increase their service before this debt repayment

dahmie2013:
Are you thinking? When did debtors start setting conditions for creditors?

Dbegining:
I was expecting praise singers of Tinubu on this thread and i wasn't disappointed.

You see, there's a high level of stupidity in the population and that's why we are not going forward as a nation.

Someone up there said the debt owed by the FG for services ALREADY PROVIDED by the GenCos should be used as a bargaining chip for FUTURE services. How does that make any sense.

Apart from the fact that it's negotiating under duress and can even be classified as bad faith, when making an agreement about the future, you can't use monies owed previously as a tool for bargaining. Eve if the GenCos were to disagree, the FG still has a obligation to pay them what is owed cause services has already been provided.

Nairaland is a whole lot, I tell you.

Jayhome24:
Yet Tinubu is not doing anything ba? If Buhari had put these much efforts for his 8 years of ruins Nigeria would have be better than these but he totally ignored everything and ruined it all and one minister under him who was known for collecting sabotage loans that crippled Nigeria he is now the one telling me I should vote for his criminal "Association of Desperate Criminals" party called ADC is that not juju?

If even I'm mad I will rather vote for Turji the notorious terrorist to become the president than voting for Amaechi, El Rufai, Atiku or obi, God forbid.

SmartPolician:
Huncle, you just have one vote. Don't flatter yourself

SmartPolician:
If Tinubu is serious about fixing the power industry, he would set up a counterpart funding scheme to partly finance generation and distribution projects across states. Governors can start such projects and get 30% financial support from the FG before completion.

Signing a bill to democratize power generation and distribution is good, but states don't have money and patience to invest in that industry because they are long-term and capital-intensive projects.

Now, states are launching their electricity industry watchdogs up and down. Those mugus acting as regulators go about setting prices for Discos but Discos and FG are owing Gencos trillions of naira. Una never wan serious for this country.

dahmie2013:
Are you thinking? When did debtors start setting conditions for creditors?

naptu2:

https://www.youtube.com/watch?v=1dbViAhLnY4?si=2orl_1kYxlfVqVcL

Bayo Onanuga @aonanuga1956



https://x.com/aonanuga1956/status/1948810490488258944?t=f9ubmS1MKGjXopkeUJtGpw&[/quote]Many of these approaches are always cosmetic and not what will bring a lasting permanent solution.

starpower:
Sir you are absolutely right. Power is one of the most critical industries that must be fully deregulated. With deregulation, state governments, private sector players, and even community-based microgrids can co-invest, co-innovate, and compete effectively, not just with each other, but against the inefficiency-ridden, subsidy-dependent national grid.

Once consumers start paying the reflective cost of power i meant the actual market price with service delivery should naturally improve. Why? Because competition enforces discipline. When alternatives such as solar, gas, and hybrid microgrids become viable and attractive, the national grid will either reform or get replaced. The days of monopoly power are numbered.

Subsidies breed complacency. They mask inefficiencies and encourage waste. Worse, they drain our national coffers with money that should be channeled into productive infrastructure such as roads, rail, ports, and energy pipelines. These are assets the private sector cannot easily fund alone, but which enable every sector to thrive once built.

Subsidies should target production, not consumption. When you subsidize production, power generation, agro-processing, manufacturing inputs, you create jobs, reduce import dependence, and strengthen the Naira. Subsidizing consumption is like pouring water into a leaking bucket: you burn through money without fixing the system.

Even workers in the power industry will benefit in the long run. A deregulated market means more jobs, better training, higher salaries, and global-standard operations. Everyone wins, except inefficiency.

Jayhome24:
Yet Tinubu is not doing anything ba? If Buhari had put these much efforts for his 8 years of ruins Nigeria would have be better than these but he totally ignored everything and ruined it all and one minister under him who was known for collecting sabotage loans that crippled Nigeria he is now the one telling me I should vote for his criminal "Association of Desperate Criminals" party called ADC is that not juju?

If even I'm mad I will rather vote for Turji the notorious terrorist to become the president than voting for Amaechi, El Rufai, Atiku or obi, God forbid.