BREAKING: Tinubu to meet power firms over N4tn sector debt crisis

President Bola Tinubu is set to hold a crucial meeting with leaders of Nigeria’s electricity generation companies (GenCos) in a bid to resolve the mounting N4 trillion debt threatening to destabilize the country’s power supply chain.

This development comes on the heels of an emergency session in Abuja between the Minister of Power, Adebayo Adelabu, and GenCos’ top executives.

The meeting, which took place on Tuesday, focused on the sector’s deepening liquidity crisis and fears of a potential national grid collapse.

According to a statement issued on Sunday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister, the Federal Government plans to immediately offset a significant portion of the debt.

The remaining balance is expected to be cleared over the next six months using promissory notes and other financial instruments.

“There’s an urgent need to settle a substantial part of the debt in cash,” Adelabu said.

“At the very least, let us pay a meaningful amount now and commit to clearing the rest with structured instruments.”

He stressed the seriousness of the situation, calling it a national emergency that demands swift and coordinated action from all stakeholders.

President Tinubu’s proposed meeting with GenCos is expected to finalize these debt resolution plans and reinforce the administration’s commitment to stabilizing the power sector.

Representing the GenCos during the earlier meeting was retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies.

He reiterated that the sector is at a breaking point, with operational sustainability now at risk due to prolonged financial strain.

Recent reports indicate that the total debt owed to GenCos has now surged past N4 trillion. This includes N2 trillion for electricity supplied in 2024 and an additional N1.9 trillion in outstanding legacy payments.

Details later.