The Federal Government is racing to prevent a total collapse of Nigeria’s fragile power sector, with President Bola Ahmed Tinubu expected to meet with power generating companies (GenCos) over an alarming N4 trillion debt crisis.

 

The planned presidential intervention comes in the wake of a high-level emergency meeting in Abuja between the Minister of Power, Chief Adebayo Adelabu, and the leadership of the GenCos. At the heart of the meeting were growing concerns that the liquidity crisis threatening the sector could lead to the collapse of the national electricity grid.

 

In a statement , Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister, said the government had pledged to settle a major portion of the debt immediately, with the remainder to be cleared within six months through promissory notes and other financial instruments.

 

“There is a need to pay a substantial amount of the debt in cash,” Adelabu stated. “At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest.”

 

Adelabu described the situation as a national emergency, stressing the Tinubu administration’s determination to stabilize the sector, protect the grid, and prevent a full-blown energy crisis.

 

Leading the GenCos’ delegation at the meeting was retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies. He disclosed that the total debt stands at over N4 trillion, which includes N2 trillion owed for electricity supplied in 2024 and another N1.9 trillion in legacy debt.

 

In response, Adelabu reaffirmed the administration’s commitment to enacting lasting reforms that would not only ensure a more reliable power supply across Nigeria but also restore investor confidence in the sector.

 

The meeting signals a crucial turning point in the government’s efforts to avert a collapse of a power system already under intense strain from years of underinvestment, poor revenue collection, and systemic inefficiencies.