President Bola Tinubu has given assurances to Nigeria’s electricity generation companies (GENCOs) that his administration will resolve longstanding debt claims plaguing the power sector. During a meeting held at the Presidential Villa with GENCO chairmen led by Col. Sani Bello (rtd), the president appealed for more time to complete the verification and validation of the debts.
Highlighting his commitment to sectoral reform, Tinubu stressed the importance of fostering a stable investment climate and discouraging punitive actions like foreclosures from financial institutions against GENCOs. He urged banks to exercise restraint and work in tandem with the federal government.
Special Adviser on Energy, Mrs. Olu Verheijen, revealed that a ₦4 trillion bond programme has been granted anticipatory approval by the President to bridge the liquidity shortfall in the sector. She explained that as of April 2025, the government has verified ₦1.8 trillion out of a ₦4 trillion debt owed to GENCOs since 2015, according to the Nigerian Bulk Electricity Trading Company (NBET).
Minister of Power, Chief Adebayo Adelabu, praised the president’s efforts in restoring investor confidence, citing increased generation capacity from 13,000MW to 14,000MW, a new peak generation of 5,801MW, and a record daily delivery of 120,370MWh recorded on March 4, 2025. He added that more than $2 billion in private investment has flowed into the sector, increasing revenues from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 and reducing government subsidies by ₦700 billion.
President Tinubu acknowledged the debt burden inherited from past administrations, emphasizing his administration’s commitment to transparency. He said, “We must all persevere together. The government is taking steps to scrutinize the claims by engaging credible audit and legal firms.”
okay.ng reports that this development signals a renewed effort to address the electricity sector’s liquidity issues with urgency and transparency.
