President Bola Tinubu has assured power generation companies (GENCOs) that his administration is committed to resolving longstanding debts owed to them, pledging transparency and patience as verification processes continue.
At a crucial meeting on Friday with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), President Tinubu appealed for time to audit and validate debt claims amounting to ₦4 trillion. The meeting, held at the Presidential Villa, Abuja, focused on addressing Nigeria’s power sector liquidity crisis.
Special Adviser to the President on Energy, Olu Verheijen, disclosed that President Tinubu has granted anticipatory approval for a ₦4 trillion bond issuance aimed at clearing verified obligations to GENCOs. She noted that only claims authenticated through rigorous validation will be honoured.
“We’ve engaged 27 GENCOs to review their agreements. So far, ₦1.8 trillion has been verified, while the entire debt exposure stands at ₦4 trillion as of April 2025,” Verheijen said, emphasizing that this figure is still subject to further verification.
President Tinubu, while acknowledging the sector’s legacy liabilities, stressed the need for patience and cooperation. “We will resolve these debts, but it must be based on credible audits. We cannot rush what must be done right,” he stated.
Minister of Power, Adebayo Adelabu, praised the administration’s reforms, including the enactment of the Electricity Act 2023 and the introduction of Nigeria’s first Integrated National Electricity Policy in 24 years. He highlighted progress in expanding generation capacity, increasing sector revenue by 70%, and reducing subsidy burdens.
However, Adelabu warned that the liquidity crunch threatens the sustainability of these reforms and urged immediate financial intervention to prevent a sector-wide shutdown.
Industry leaders, including Tony Elumelu and Kola Adesina, echoed the need for urgent liquidity support, warning that debt overhangs and gas supply shortfalls are crippling operations and hindering further investments.
The meeting also had in attendance key government officials, regulators, and stakeholders from Nigeria’s energy sector.
