Nigeria’s electricity generation companies are pressing for an urgent audience with President Bola Tinubu to discuss the staggering N4.7 trillion debt owed to them, warning that the sector risks collapse without swift government action.
Although the presidency has promised talks with the Gencos, no date has been confirmed. Joy Ogaji, CEO of the Association of Power Generation Companies, told reporters that while the sector remains cautiously hopeful about the government’s pledge to address the debt, time is running out. “We are eager for this meeting to happen as soon as possible,” she said, confirming that a detailed letter outlining their demands has already been submitted to federal authorities.
This push comes after a recent high-stakes meeting between Power Minister Adebayo Adelabu and top Genco executives in Abuja, where concerns about potential grid failure due to deepening liquidity challenges took center stage. The government, in response, committed to settling part of the debt immediately and clearing the remainder within six months through promissory notes and financial instruments.
Ogaji highlighted the crippling challenges facing power generators, from inconsistent gas supply to persistent non-payments and the volatile exchange rate, which has seen the naira slide from N157/$ in 2013 to N1,600/$ today. These issues, she said, are straining maintenance budgets and loan repayments. “Despite enduring risks like grid instability and heavy taxes, Gencos have stayed committed to keeping the lights on,” she noted.
The total debt includes N2 trillion owed for power supplied in 2024 alone and N1.9 trillion in older liabilities, placing severe pressure on operators.
Minister Adelabu acknowledged the urgency, calling the debt crisis a national emergency. “The sector cannot withstand more strain. We must settle a significant portion in cash now and use promissory notes for the balance,” he said, emphasizing the government’s intent to stabilize the power industry and avoid further deterioration.
Industry leaders echoed these concerns. Retired Colonel Sani Bello, chairman of Mainstream Energy Solutions and head of the Gencos’ association, warned that operations are nearing a breaking point. “This debt overhang is crippling our ability to maintain infrastructure and secure funding. Without immediate support, the entire power sector could collapse,” he cautioned.
Kola Adesina, chairman of Egbin Power and First Independent Power Limited, added, “Power is the backbone of every sector—industries, homes, hospitals. This is a national crisis, and failure is not an option.”
As tensions mount, the Gencos remain hopeful that a direct meeting with President Tinubu will unlock a swift resolution and prevent a total breakdown of Nigeria’s electricity supply chain.
