President Bola Tinubu has assured electricity generation companies (GENCOs) of his administration’s commitment to resolving longstanding debt claims amounting to over ₦4 trillion, while appealing for patience as the government completes verification and validation processes.
Speaking at a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja on Friday, Tinubu emphasized his administration’s resolve to stabilise the power sector and create a bankable investment environment.
“I accept the liabilities of my predecessors, but such acceptance must be based on credible verification,” the President said, noting that legal and audit firms have been engaged to scrutinise the claims thoroughly.
Olu Verheijen, Special Adviser to the President on Energy, disclosed that an anticipatory approval has been granted by the President for a ₦4 trillion bond programme to tackle the sector’s liquidity crisis. However, she stressed that only validated claims will be settled.
“We’ve verified ₦1.8 trillion of the ₦4 trillion claims submitted by GENCOs for the period from 2015 to 2023. This process is still ongoing and subject to further downward revision,” she said.
The President reaffirmed his belief in a market-driven electricity sector, while cautioning financial institutions against foreclosing on GENCO assets. “Sharpen your pencils, but keep an eraser handy,” he told banks, urging cooperation and flexibility.
Tinubu noted that reforms like the adoption of compressed natural gas (CNG) and the removal of fuel subsidies have helped redirect resources toward stabilizing the economy.
Minister of Power, Adebayo Adelabu, praised the administration’s reforms, highlighting key achievements including:
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Passage of the Electricity Act, 2023, decentralizing the power sector.
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Launch of Nigeria’s first Integrated National Electricity Policy in 24 years.
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Attraction of over $2 billion in private capital.
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Growth in annual sector revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
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Increase in peak generation to 5,801 MW and record daily energy delivery of 120,370 MWh.
Adelabu acknowledged that despite progress, the sector faces a critical liquidity challenge that threatens ongoing reforms and investments. He appealed for phased support to defray debts and sustain momentum.
Business leaders Tony Elumelu and Kola Adesina echoed this appeal, warning of impending threats to GENCO operations due to rising indebtedness and gas supply shortages.
“We are at risk of foreclosure by banks—not due to mismanagement, but because the system owes us trillions,” Elumelu said, urging the President to unlock the sector’s potential through urgent financial support.
Adesina proposed mobilizing gas supplies from the NLNG to revive underperforming plants, particularly in the Afam axis.
The high-level meeting was attended by Chief of Staff Femi Gbajabiamila, Coordinating Minister of the Economy Wale Edun, Information Minister Mohammed Idris, regulators, and key stakeholders in the power industry.
