By Ameenat Hamzat, Lagos, Nigeria
Nigerian President Bola Ahmed Tinubu, is set to hold a meeting with the leadership of Nigeria’s power-generating companies (GenCos) in a bid to rescue the country’s electricity sector from imminent collapse, as debts in the sector soar to a staggering N4 trillion.
The proposed meeting, which follows an emergency session between the Minister of Power, Adebayo Adelabu, and GenCos’ chairmen in Abuja on Tuesday, aims to address the liquidity crisis threatening the stability of the national grid.
According to a statement issued on Sunday by the Minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the Federal Government plans to make a substantial upfront cash payment to the GenCos. The remaining debt will be addressed using promissory notes within the next six months.
Adelabu said: “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.”
The GenCos, led by Col. Sani Bello (retd.), Chairman of Mainstream Energy Solutions and the Association of Power Generating Companies, have expressed grave concern over the N4tn debt burden. This includes N2tn owed for power supplied in 2024 and N1.9tn in legacy debt, which they say could lead to a total shutdown of power generation if not urgently addressed.
More details are expected following the upcoming presidential meeting.
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