By Charles Pemu 
Abuja, Nigeria — In a decisive move to rescue Nigeria’s ailing power sector, President Bola Ahmed Tinubu is set to hold a high-level meeting with electricity-generating companies (GenCos) over a staggering ₦4 trillion debt that threatens to push Nigeria’s already fragile power sector into deeper crisis.
This development follows last week’s emergency session convened by the Minister of Power, Adebayo Adelabu, with GenCos in Abuja, where the government promised urgent intervention to stabilise the sector.
In a statement released on Sunday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the minister, the Federal Government acknowledged the dire financial strain on GenCos and vowed to take immediate steps to defray a significant portion of the outstanding debt.
“There is need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest,” Adelabu was quoted as saying.
According to the minister, the balance of the debt will be settled through financial instruments such as promissory notes within six months, in order to restore investor confidence and prevent a total breakdown of the electricity supply chain.
The urgency of the situation was underscored by Col. Sani Bello (Rtd.), Chairman of Mainstream Energy Solutions and the Association of Power Generating Companies (APGC), who led the GenCos’ delegation. He warned that liquidity shortfalls had left GenCos unable to service loans or maintain infrastructure, pushing the sector toward collapse.
“Without urgent intervention, the entire power ecosystem could collapse,” Bello said.
Supporting the call for swift government action, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the crisis as a “national emergency,” stressing that electricity remains the lifeblood of every critical sector in the country.
Dr. Joy Ogaji, CEO of the APGC, also painted a grim picture, citing persistent challenges such as erratic gas supply, chronic payment defaults, heavy taxation, and foreign exchange volatility. She noted that the sharp depreciation of the naira—from ₦157 to over ₦1,600 to the dollar between 2013 and 2025—has devastated the GenCos’ ability to finance operations and repay loans.
“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
Acknowledging the government’s role in the sector’s prolonged difficulties, Adelabu pledged to pursue structural reforms alongside the debt repayment. These include a push for the full liberalisation of the power sector and a shift to cost-reflective tariffs, with the Federal Government providing targeted subsidies for economically vulnerable citizens.
“Citizens must pay the appropriate price for the energy consumed. Our economy cannot sustain subsidies indefinitely,” he said, adding that the ministry would also lead public sensitisation campaigns to improve understanding and compliance.
The minister also hinted at regulatory reviews aimed at reducing levies and enhancing overall market stability.
As the nation awaits the upcoming meeting between President Tinubu and the GenCos, stakeholders hope the federal intervention will help avert a full-blown crisis and lay the groundwork for a more sustainable power sector.