President Bola Tinubu will meet with the leadership of electricity-generating companies over the N4 trillion power sector debt.
A statement by the Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Adebayo Adelabu, Bolaji Tunji, on Sunday, said the Federal Government vowed to urgently address the debt following high-stakes talks between Adelabu and chairmen of Generating GenCos in Abuja on Tuesday.
He said FG’s intervention is aimed at averting an imminent collapse of the power infrastructure in the country.
According to the statement, the minister assured GenCos executives that the government would prioritise immediate payment of a significant amount out of the N4tn debt, while the balance would be defrayed through other debt instruments.
He said this would be proposed in a meeting being planned between President Tinubu and 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 a debt instrument in promissory notes to pay the rest”.
He assured the payment of the outstanding balance within six months through financial instruments such as promissory notes.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated, adding that the president would meet with GenCos leadership to fast-track the process.
The GenCoS were led by the Chairman of Mainstream Energy Solutions, who is also the Chairman of the Association of Power Generating Companies (APGA), Col. Sani Bello, who had earlier sounded the alarm over the sector’s dire state, citing the N4tn debt as a critical threat to operations.
He also warned that liquidity challenges had left GenCos unable to secure loans or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he stressed.
