Electricity generation companies (Gencos) are pressing for an immediate meeting with President Bola Tinubu over the massive ₦4.7 trillion debt owed by the Federal Government to operators in the power sector. Although a meeting was promised following a high-level session with Minister of Power Adebayo Adelabu, no date has been set. The Gencos, through their association’s CEO, Joy Ogaji, are urging the presidency to act fast to avoid an imminent collapse of the national grid, citing the sector’s liquidity crisis.
According to Ogaji, the Gencos are cautiously optimistic after the government’s pledge to pay a large portion of the debt immediately, while the rest would be settled using promissory notes within six months. Despite this commitment, the companies are still waiting for a concrete date to sit with the president and have documented their demands in a letter to the federal authorities. Ogaji pointed out that the sector is battling not only with unpaid invoices but also with erratic gas supply, FX volatility, and escalating operational costs.
The depreciation of the naira, which has plunged from ₦157 to over ₦1,600 per dollar since 2013, has severely impacted the Gencos’ ability to maintain equipment and repay loans. The companies say they are owed ₦2 trillion for power supplied in 2024 alone, with an additional ₦1.9 trillion in legacy debts. At the Abuja meeting, sector leaders emphasized that they have absorbed unbearable financial risks and warned that without intervention, the entire power ecosystem could collapse.
Top players in the industry, including Mainstream Energy’s Col. Sani Bello (retd.) and Kola Adesina of Egbin Power, echoed the call for urgent action, labeling the situation a national emergency. They stressed that without electricity, key sectors like healthcare, manufacturing, and domestic livelihoods will suffer. The government, through Adelabu, acknowledged the severity of the issue and reaffirmed its commitment to resolving the crisis to prevent further deterioration of Nigeria’s fragile power infrastructure.
Source: Punch