President Bola Tinubu has assured power generation companies of the Federal Government’s commitment to settling outstanding debts, pending a thorough audit process.
The assurance was given on Friday during a meeting with the Association of Power Generation Companies at the State House, Abuja.
The meeting details were disclosed in a statement issued by Presidential Spokesperson, Mr Bayo Onanuga.
The delegation was led by retired Col. Sani Bello and included other key industry stakeholders.
Tinubu reiterated his commitment to resolving liquidity challenges affecting Nigeria’s electricity sector.
“I accept the liabilities of my predecessors, but only on credible and verifiable grounds.
“I must confirm the figures are authentic. This inheritance must not be cosmetic, but a tool for industrial and economic advancement,” Tinubu said.
He urged power firms and financial institutions to remain patient during the verification process.
“We are here now. Please inform your colleagues. Allow us time for proper validation of the numbers,” he added.
Tinubu emphasised support for a market-driven electricity sector and acknowledged unresolved legacy issues.
“This issue has lingered. We are now addressing it. We’ve saved significantly on fuel subsidies and introduced CNG to ease pressure on citizens,” he said.
He appealed to banks for cooperation in resolving financial constraints.
“To our banking partners, avoid foreclosures. Be prudent, but flexible. Let us endure this together,” he said.
Tinubu emphasised that stable electricity is essential to national growth and the well-being of citizens.
Special Adviser on Energy, Ms Olu Verheijen, said Tinubu approved a ₦4 trillion bond to ease power sector liquidity issues.
She attributed the crisis to years of unpaid tariff shortfalls and wide market gaps.
She noted the Federal Government owes a verified ₦4 trillion debt to GENCOs, dating back to 2015.
“We’ve met with 27 GENCOs to review their PPAs and gas agreements, validating the legitimacy of claims.
“GENCOs are claiming ₦4 trillion for the period 2015 to end of 2023,” she said.
She confirmed that NBET has so far validated ₦1.8 trillion of those claims.
“Additionally, ₦200 billion in unfunded subsidies has accumulated, increasing the government’s liability.
“As of April 2025, verified exposure stands at ₦4 trillion,” she said.
She warned that the debt figure might be adjusted following further assessments.
“The ₦4 trillion bond has anticipatory approval, subject to negotiation and agreement.
“Only verified debts will be included in the DMO’s final issuance,” Verheijen explained.
Minister of Power, Adebayo Adelabu, praised Tinubu’s leadership and recent sector reforms.
“Your presence today confirms your unwavering commitment to Nigeria’s power development.
“Under your leadership, we’ve achieved critical sector milestones in under two years,” he said.
He described the Electricity Act 2023 as a breakthrough for decentralising and liberalising the market.
The administration also introduced the first Integrated National Electricity Policy in 24 years.
Adelabu said over $2 billion in private capital was attracted for grid expansion projects.
He reported that revenue rose by 70%, from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
This increase helped cut government subsidies by more than ₦700 billion.
Installed generation capacity reached 14,000 MW, with 5,801 MW achieved on March 4.
Daily energy delivery hit a record high of 120,370 megawatt-hours.
There was no national grid collapse in 2025, due to the Presidential Power Initiative.
This initiative added over 700 MW to transmission capacity.
He noted 300,000 smart meters were delivered under the ₦700 billion Presidential Metering Initiative and World Bank DISREP.
However, Adelabu warned that liquidity issues threaten to undo recent gains.
“The debt overhang could lead to a total shutdown of generation assets,” he said.
He urged the President to approve phased payments to GENCOs without delay.
He called for sustained structural reforms to stabilise the power sector.
Business leaders Tony Elumelu and Kola Adesina also urged swift government intervention.
“Mr President, the banks are threatening foreclosure. Not because of poor performance, but due to unpaid debts,” Elumelu said.
He praised Tinubu for restoring investor confidence and oil production.
“Before 2023, we lost 97 per cent of daily oil output. Today, we retain 98 per cent. That’s real progress,” Elumelu said.
Adesina also highlighted the urgent need for liquidity and a reliable gas supply.
“Liquidity is the lifeblood of power generation. Without it, Nigeria’s development will suffer,” Adesina said.
He stated that underperforming plants in Afam are lacking gas due to unpaid suppliers.
“We suggest unlocking 800 million cubic feet of gas via NLNG for plant supply,” he said.
The meeting was attended by top government officials, regulators, and stakeholders from the power sector.
Present were the Chief of Staff, Minister of Finance Wale Edun, and Minister of Information Mohammed Idris.
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