The Minister of Power, Chief Adebayo Adelabu has commended President Bola Tinubu for his decisive intervention in addressing the longstanding debt crisis affecting Nigeria’s power generation companies.
At a high-level meeting between President Tinubu and the Association of Power Generation Companies at the Presidential Villa, Adelabu lauded the administration’s commitment to resolving the liquidity challenges stifling the sector’s growth..
He highlighted the transformative strides made in the power sector since May 2023, crediting the President’s visionary leadership for restoring investor confidence and driving tangible improvements across the electricity value chain.
The minister emphasised that the President’s presence at the meeting underscored his unwavering dedication to the stability and sustainability of Nigeria’s power sector, noting that in less than two years, the administration had achieved critical milestones that were once deemed impossible.
Adelabu listed key achievements under the Tinubu administration, which include the enactment of the Electricity Act (2023), the first legislation signed by President Tinubu, which decentralises and liberalises Nigeria’s electricity market to foster competition and private-sector participation.
He also said that the administration launched the first Integrated National Electricity Policy in 24 years, providing a coherent framework for sector planning and execution. Over $2 billion in new capital has been attracted for grid expansion and off-grid electrification projects, while annual sector revenue rose by 70%, from N1 trillion in 2023 to N1.7 trillion in 2024, reducing government subsidy obligations by N700 billion.
The minister further said that installed generation capacity has grown from 13,000MW to 14,000MW, with an all-time peak generation of 5,801MW and zero national grid collapses in 2025. He said that over 300,000 smart meters had been delivered under the N700 billion Presidential Metering Initiative, with 3.45 million more in procurement.
While celebrating these achievements, Adelabu warned that the sector’s progress risks being derailed by a N4 trillion debt overhang owed to electricity Generating Companies (GenCos), describing that as a legacy liability accumulated since 2015.
He stressed that, without urgent liquidity support, the sector faces the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
Adelabu appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasising that the Tinubu administration’s reforms have already laid the groundwork for a self-sufficient power market.
Echoing concerns raised by industry leaders Tony Elumelu and Kola Adesina, Adelabu emphasised the need to address gas supply shortfalls, particularly in the Afam axis, where unpaid gas suppliers have constrained generation.
He described liquidity as the oxygen of the sector and proposed immediate solutions, such as unlocking 800 million cubic feet of gas through NLNG, to stabilise generation, while long-term reforms take root.
He endorsed the President’s appeal for (GenCos) and financial institutions to exercise patience as the government completes its verification process.
He acknowledged the frustrations of investors but stressed the need to ensure that every liability claimed is valid and verifiable. While the administration would not inherit debts without due scrutiny, Adelabu said that remains committed to resolving them transparently.
He praised the N4 trillion bond programme, granted anticipatory approval by the President, as a viable solution and urged stakeholders to collaborate on finalizing the terms to ensure only legitimate debts are securitised.
The minister reiterated that electricity remains the cornerstone of Nigeria’s industrial and economic ambitions, urging collective perseverance to sustain the sector’s revival.
He expressed confidence that, with the President’s continued support, the sector would overcome its legacy challenges and deliver stable, affordable power to every Nigerian.
The meeting was attended by the Chief of Staff to the President, Rt. Hon. Femi Gbajabiamila; the Coordinating Minister of the Economy and Minister of Finance, Chief Wale Edun; the Minister of Information, Mallam Mohammed Idris; the Special Adviser on Energy, Mr. Olu Verheijen; GenCos Chairmen, including Col. Sani Bello (rtd.); and industry leaders Elumelu and Adesina.
