President Tinubu Commits To Resolving ₦4 Trillion Debt Crisis In Meeting With Power Generation Leaders.
President Bola Tinubu has pledged to address the ₦4 trillion debt crisis crippling Nigeria’s power sector, assuring leaders of power generation companies (GENCOs) that his administration is dedicated to resolving longstanding financial challenges. The commitment was made during a crucial meeting on Friday at the Presidential Villa in Abuja, where Tinubu met with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd). The President’s assurance brings hope for stabilising Nigeria’s electricity supply chain, which has been plagued by chronic liquidity issues.
The meeting, convened to avert a potential collapse of the national power grid, focused on debts accumulated since 2015, with ₦1.8 trillion already validated by the Nigerian Bulk Electricity Trading Company (NBET). Tinubu called for patience from GENCOs, explaining that government agencies are working with audit and legal firms to verify claims for transparency and fairness. “I accept the assets and liabilities of my predecessors, but that acceptance must be on credible grounds,” he said, stressing the importance of accurate figures to ensure economic stability. A ₦4 trillion bond programme, which has received anticipatory approval, was highlighted by Special Adviser on Energy, Mrs Olu Verheijen, as a key strategy to tackle the sector’s liquidity shortfall.
The Minister of Power, Chief Adebayo Adelabu, praised Tinubu’s leadership, noting significant reforms since the administration assumed office. The Electricity Act 2023, the first legislation signed by Tinubu, has decentralised and liberalised the electricity market, attracting over $2 billion in private capital and boosting sector revenue by 70 per cent—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024. This has reduced government subsidy obligations by over ₦700 billion. Adelabu also highlighted an increase in installed generation capacity from 13,000 MW to 14,000 MW, with a record peak generation of 5,801 MW and a maximum daily energy delivery of 120,370 MWh on 4 March 2025.
Business leaders, including Tony Elumelu and Kola Adesina, underscored the urgency of resolving the crisis, warning of potential foreclosures by banks due to GENCOs’ heavy indebtedness. “We’ve come to you as a last hope. The system owes us trillions,” Elumelu said, commending Tinubu for restoring stability in oil production and banking. Adesina stressed that “liquidity is the oxygen of our business,” urging swift action to prevent a stall in generation capacity. Tinubu responded by calling for collaboration, urging banks to avoid foreclosures and work together to safeguard the sector.
Describing electricity as “the most important discovery of humanity in the last 1,000 years,” Tinubu reaffirmed that reliable power is fundamental to Nigeria’s economic growth and human dignity. The administration’s reforms, including the promotion of Compressed Natural Gas (CNG) as a fuel alternative, reflect broader efforts to address systemic challenges. With ongoing audits and a commitment to a market-driven electricity sector, the meeting marks a pivotal step towards ensuring a stable and sustainable power supply for Nigerians.
