Electricity generation companies want President Bola Tinubu to hasten the plan of meeting with the firms over the ₦4.7 trillion power sector debt to the Gencos.
While saying there is no date fixed for the meeting yet, the Gencos want the meeting to take place as soon as possible.
In a chat with our correspondent, the Managing Director and Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, expressed cautious optimism over the promise that the government would pay the debt.
Following a high-level meeting between the Minister of Power, Adebayo Adelabu, and chairmen of Gencos in Abuja, amid mounting fears of a possible collapse of the national grid due to liquidity constraints in the sector, the government announced that Tinubu would meet with the generation companies.
The government pledged immediate action to reduce the ₦4.7 trillion debt owed to the Gencos.
A statement by the power minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, stated that the Federal Government had resolved to settle a substantial portion of the debt immediately, while the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He said this would be proposed in a meeting being planned between President Bola Tinubu and the Gencos’ leadership.
Ogaji, who was also at the meeting with the power minister, told our correspondent that no date had been fixed for the meeting yet.
Asked when the Gencos would like to meet the President over the non-payment of the debt, Ogaji said the meeting should be held “as soon as possible.”
She told our correspondent that the requests of the Gencos have been chronicled in a letter sent to the Federal Government.
Ogaji had highlighted the challenges facing the power generation companies, including erratic gas supply, persistent defaults on payments, and foreign exchange volatility.
Speaking at the meeting, she noted that the dramatic depreciation of the naira—from ₦157 to $1 in 2013 to ₦1,600 to $1 now—had severely affected maintenance budgets and loan repayments.
“Gencos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
The PUNCH earlier reported that Gencos had issued a warning to the Federal Government over the continued accumulation of debts now totalling over ₦4.7 trillion . The companies said they were currently owed ₦2 trillion for power supplied in 2024 and ₦1.9 trillion in legacy debts.
Reacting, Adelabu said there is a need to pay a substantial amount of the debt in cash. “At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest,” Adelabu said.
He emphasised the Federal Government’s determination to prevent a collapse of the power sector, describing the situation as a national emergency.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” the minister added.
At the meeting with Adelabu, the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), warned that the sector faced a looming collapse due to the mounting debt and persistent liquidity challenges.
Bello noted that the debt burden had crippled operations and limited access to funding for maintenance and infrastructure upgrades.
“Without urgent intervention, the entire power ecosystem could collapse,” he said.
Also, the Chairman of Egbin Power and First Independent Power Limited, Kola Adesina, said, “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”
