By Jemimah Wellington, JKNewsMedia Reporter
THE FEDERAL Government has pledged swift intervention to tackle the N4 trillion debt paralysing Nigeria’s power generation sector, following urgent high-level discussions in Abuja between Power Minister Adebayo Adelabu and the leadership of the Generating Companies of Nigeria (GenCos).
The assurance came amid growing fears of a system-wide collapse, as mounting financial pressure continues to cripple the country’s energy producers.
Adelabu, addressing top executives of the sector, committed to an immediate disbursement of a significant portion of the outstanding debt, with the remainder to be offset using financial instruments such as promissory notes.
He said the plan would be presented at a forthcoming meeting between President Bola Ahmed Tinubu and the GenCos’ leadership.
“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 debt instrument in promissory notes to pay the rest,” Adelabu said.
He stressed the urgency, promising that the outstanding balance would be cleared within six months to restore confidence and prevent operational shutdowns across power stations.
“We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis,” he said.
The GenCos were represented by Col. Sani Bello, Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), who delivered a stark warning over the industry’s precarious condition.
“Without urgent intervention, the entire power ecosystem could collapse,” he cautioned, citing the debt as a critical impediment to securing loans and sustaining infrastructure.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, reinforced the alarm, describing the situation as a national emergency.
“Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail,” he warned.
Adelabu acknowledged systemic failings on the government’s part and pledged broader reforms to remove structural roadblocks.
He called for full liberalisation of the sector and adoption of cost-reflective tariffs, stressing that Nigerians must begin to pay realistic prices for electricity.
“Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidy for economically disadvantaged Nigerians.
We have to understand that our economy cannot sustain subsidies indefinitely,” he said, urging a nationwide sensitisation campaign to foster compliance and reduce wastage.
Dr Joy Ogaji, CEO of APGC Power, laid bare the sector’s longstanding structural woes—from chronic payment defaults and erratic gas supply to foreign exchange instability.
She noted the devastating impact of the naira’s plunge from ₦157/$1 in 2013 to over ₦1,600/$1 today. “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
Adelabu outlined a sustainability roadmap, including regulatory reviews aimed at reducing levies and stabilising market conditions.
He also called for collaboration with GenCos on public education campaigns, targeting more efficient electricity use and improved understanding of tariff dynamics.
