President Bola Tinubu has urged electricity generation companies (GENCOs) to allow the Federal Government more time to confirm the validity of ₦4 trillion in debt claims owed to them.
Speaking during a meeting at the Presidential Villa with the Association of Power Generation Companies, Tinubu acknowledged the backlog of debts dating back to 2015 but emphasized that payments must be based on credible and verified records.
“I’m ready to take on the responsibilities left behind by previous governments, but everything must be backed by facts and transparency,” he said. He appealed for cooperation as government auditors and legal teams review the claims.
To help relieve the sector’s liquidity strain, Tinubu has granted preliminary approval for a ₦4 trillion bond. However, this will only cover debts that are confirmed through a proper validation process.
According to the President’s Special Adviser on Energy, Olu Verheijen, around ₦1.8 trillion of the ₦4 trillion claim has been validated so far. She added that the final figure could be lower, depending on the outcome of the ongoing review.
Verheijen also noted that unpaid electricity subsidies—currently estimated at ₦200 billion—have added to the total liabilities.
President Tinubu appealed to banks to hold off on foreclosing loans to GENCOs, saying such moves could worsen the situation. “We’re working on a solution. Let’s be patient and get it right,” he said.
Minister of Power, Adebayo Adelabu, praised the administration’s efforts, pointing out that reforms have led to increased investment, higher power generation, and improved revenue. He reported a 70% rise in sector revenue—growing from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—which has significantly reduced the government’s subsidy costs.
Still, Adelabu warned that the sector’s financial challenges could derail progress if not urgently addressed.
Business leaders Tony Elumelu and Kola Adesina, who also attended the meeting, urged the government to act swiftly. They explained that GENCOs are under pressure from banks and gas suppliers due to the massive debts and may be forced to scale back operations if support doesn’t come soon.
The meeting was attended by key government officials, including Chief of Staff Femi Gbajabiamila, Finance Minister Wale Edun, and Information Minister Mohammed Idris, underscoring the administration’s serious push to fix the power sector’s long-running financial issues.
