President Tinubu intervenes in Nigeria’s power sector crisis, urging GENCOs for patience as a ₦4 trillion bond gets anticipatory approval to clear legacy debts
Nigeria Power Sector Debt Resolution gained momentum Friday as President Bola Tinubu stepped in to calm rising tensions with power generation companies (GENCOs) threatening shutdowns and tariff hikes over longstanding debts.
Also read: Presidency moves to clear GenCo debt to stabilise power sector
Speaking at the Presidential Villa, Tinubu appealed to GENCOs for more time to verify and validate Nigeria’s power sector debt, now standing at ₦4 trillion.
The President emphasized transparency and fairness, promising that all claims will be scrutinized with the help of audit and legal professionals.
Special Adviser on Energy, Mrs. Olu Verheijen, revealed that a ₦4 trillion bond program has received anticipatory approval to address liquidity challenges.
Of the ₦4 trillion claimed by GENCOs since 2015, ₦1.8 trillion has already been validated.
“We are committed to a credible process,” Tinubu said. “I accept the liabilities, but they must be verifiable.”
Minister of Power Adebayo Adelabu praised the administration’s progress, noting sector reforms, increased private investment, and grid stability.
Annual power sector revenue has grown from ₦1 trillion in 2023 to ₦1.7 trillion in 2024, reducing subsidy obligations by ₦700 billion.
Despite these gains, Adelabu warned of an urgent liquidity crisis and appealed for immediate financial support.
Business leaders Tony Elumelu and Kola Adesina echoed these concerns, urging the government to prevent foreclosures and secure gas supply for underperforming power plants.
Also read: President Tinubu approves National Integrated Electricity Policy, unlocks $122.2 billion investment for Nigeria’s power sector
The Nigeria power sector debt resolution plan, centered on structured bond financing and transparent auditing, aims to avert operational collapse and attract further investment into the sector.
