Nigeria’s Minister of Power, Adebayo Adelabu, announced on Sunday that President Bola Tinubu will meet with leaders of the Power Generation Companies (GenCos) to address a staggering ₦4 trillion debt owed to the sector.
The discussions aim to establish a resolution framework, with the government pledging to immediately disburse a substantial portion of the debt while resolving the remainder through financial tools like promissory notes within six months.
This development was confirmed in a statement issued in Abuja by Bolaji Tunji, the minister’s special adviser on strategic communications and media relations. Adelabu acknowledged the government’s contribution to the sector’s challenges and vowed to implement reforms to streamline operations.
He emphasized the need for full deregulation of the power industry, urging public acceptance of cost-reflective tariffs while assuring continued subsidies for economically vulnerable groups.
GenCos representatives, including Col. Sani Bello (retired), raised alarms over the sector’s precarious state, citing persistent liquidity shortages. Kola Adesina, chairman of Egbin Power, labeled the crisis a “national emergency,” while Joy Ogaji, CEO of the Association of Power Generation Companies, identified chronic payment delays, unstable gas supplies, and the naira’s depreciation as existential threats.
Adelabu called for a collaborative effort between the government and GenCos to educate citizens on electricity consumption realities and payment obligations, stressing this as vital to stabilizing and revitalizing the sector.
WHAT YOU SHOULD KNOW
The Tinubu administration’s response to the ₦4 trillion debt crisis marks a critical juncture for Nigeria’s power sector.
Stakeholders are now pinning hopes on Tinubu’s meeting with GenCos to unlock actionable solutions.
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