In a decisive move to salvage Nigeria’s power sector from collapse, President Bola Tinubu will meet with the heads of power-generating companies to discuss the staggering N4 trillion debt owed to them, okay.ng reports.
The meeting comes after a recent gathering between Minister of Power Adebayo Adelabu and GenCos’ chairmen in Abuja, which highlighted the sector’s liquidity crisis threatening the national grid.
The Federal Government plans to settle a large portion of the debt immediately, with the balance to be paid over six months through promissory notes, according to Bolaji Tunji, Special Adviser to the Minister of Power. This strategy aims to inject cash into the sector while providing financial instruments to cover the remainder.
Adelabu emphasized the critical nature of the crisis, stating, “There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest.” He described the situation as a national emergency requiring urgent government intervention.
The GenCos, led by Col. Sani Bello (retd), warned that without swift action, the sector faces collapse due to the accumulated debt and liquidity shortages. The debt includes N2 trillion for 2024 power supply and N1.9 trillion in legacy arrears, severely impacting the companies’ ability to maintain operations.
This intervention by President Tinubu and the Federal Government is aimed at stabilizing the power sector, which is vital for Nigeria’s economic growth and industrial development. Stakeholders remain hopeful that the planned payments and financial instruments will restore confidence and operational capacity in the sector.
