President Bola Tinubu is about to carry a high-level assembly with the management of Nigeria’s energy technology firms (GenCos) to handle the over N4 trillion debt owed to them by the Federal Authorities.
The Minister of Power, Adebayo Adelabu, disclosed this in an announcement issued on Sunday in Abuja by his Particular Adviser on Strategic Communications and Media Relations, Bolaji Tunji.
In keeping with the assertion, the assembly goals to discover a mutually agreeable resolution to the lingering debt disaster threatening the soundness of Nigeria’s electrical energy provide chain.
Adelabu assured stakeholders that the Federal Authorities is dedicated to right away offsetting a good portion of the debt. He added that the remaining stability shall be addressed by means of structured monetary devices, together with promissory notes, inside a six-month timeline.
In keeping with Adelabu, the federal government was not oblivious to the vital position the GenCos play within the sector.
This administration, he said, is able to resolve legacy points affecting energy technology and fee shortfalls.
The minister acknowledged that the federal government has contributed to the operational inefficiencies plaguing the facility sector.
Reforms, Price-Reflective Tariffs on the Horizon
He reiterated the necessity for pressing reforms to get rid of systemic bottlenecks and create a extra viable and self-sustaining energy worth chain.
He additional advocated for the entire liberalisation of the facility sector, emphasising that Nigerians should start to embrace cost-reflective tariffs to make sure long-term sustainability. Nevertheless, he reassured that probably the most susceptible populations would proceed to obtain focused subsidies to cushion the affect.
GenCos warn of Sector Collapse
The monetary pressure on GenCos has reached alarming ranges, with business stakeholders warning of a possible collapse of your complete electrical energy ecosystem if liquidity points persist.
- Col. Sani Bello (Rtd), a key GenCo stakeholder, warned that the sector was approaching a breaking level. Echoing his considerations, Mr. Kola Adesina, Chairman of Egbin Energy Plc, described the scenario as nothing wanting a nationwide emergency.
- In her remarks, Pleasure Ogaji, Chief Government Officer of the Affiliation of Energy Era Firms (APGC), highlighted a number of challenges dealing with the operators, together with persistent fee defaults, erratic gasoline provide, and the depreciating worth of the naira.
- Adelabu urged GenCos to work collaboratively with the Federal Authorities in sensitising Nigerians on electrical energy consumption, billing, and the true price of energy technology. He famous that solely a concerted effort involving authorities, operators, and shoppers can result in the long-awaited reform and stabilisation of the sector.
The assembly between the President and the GenCos is anticipated to set the tone for vital selections that might form the way forward for electrical energy technology and supply in Nigeria.
Extra insights
In March 2025, the Managing Director of the Niger Delta Energy Holding Firm (NDPHC), Jennifer Adighije known as for pressing presidential intervention to safe funding for ongoing energy tasks and settle excellent funds owed to Era Firms (GenCos), as a part of efforts to enhance electrical energy provide throughout Nigeria.
Adighije highlighted the extreme liquidity challenges dealing with the facility sector, with over N4 trillion owed to GenCos, which has hindered their potential to function effectively.
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