By Muhyideen Jimoh
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‎President Bola Tinubu has assured power generation companies (GenCos) of the Federal Government’s commitment to settling outstanding debts, pending a thorough audit process.
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‎The assurance was given on Friday during a meeting with the Association of Power Generation Companies at the State House, Abuja.
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‎The meeting details were disclosed in a statement issued by Presidential Spokesperson, Mr Bayo Onanuga.
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‎The delegation was led by retired Col. Sani Bello and included other key industry stakeholders.
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‎Tinubu reiterated his commitment to resolving liquidity challenges affecting Nigeria’s electricity sector.
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‎“I accept the liabilities of my predecessors, but only on credible and verifiable grounds.
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‎“I must confirm the figures are authentic. This inheritance must not be cosmetic, but a tool for industrial and economic advancement,” Tinubu said.
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‎He urged power firms and financial institutions to remain patient during the verification process.
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‎“We are here now. Please inform your colleagues. Allow us time for proper validation of the numbers,” he added.
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‎Tinubu emphasised support for a market-driven electricity sector and acknowledged unresolved legacy issues.
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‎“This issue has lingered. We are now addressing it. We’ve saved significantly on fuel subsidies and introduced CNG to ease pressure on citizens,” he said.
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‎He appealed to banks for cooperation in resolving financial constraints.
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‎“To our banking partners, avoid foreclosures. Be prudent, but flexible. Let us endure this together,” he said.
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‎Tinubu stressed that stable electricity is crucial to national growth and citizens’ wellbeing.
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‎Special Adviser on Energy, Ms Olu Verheijen, said Tinubu approved a ₦4 trillion bond to ease power sector liquidity issues.
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‎She attributed the crisis to years of unpaid tariff shortfalls and wide market gaps.
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‎She noted the Federal Government owes a verified ₦4 trillion debt to GENCOs, dating back to 2015.
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‎“We’ve met with 27 GENCOs to review their PPAs and gas agreements, validating the legitimacy of claims.
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‎“GENCOs are claiming ₦4 trillion for the period 2015 to end of 2023,” she said.
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‎She confirmed that NBET has so far validated ₦1.8 trillion of those claims.
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‎“Additionally, ₦200 billion in unfunded subsidies has accumulated, increasing the government’s liability.
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‎“As of April 2025, verified exposure stands at ₦4 trillion,” she said.
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‎She warned that the debt figure might be adjusted following further assessments.
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‎“The ₦4 trillion bond has anticipatory approval, subject to negotiation and agreement.
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‎“Only verified debts will be included in the DMO’s final issuance,” Verheijen explained.
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‎Minister of Power, Adebayo Adelabu, praised Tinubu’s leadership and recent sector reforms.
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‎“Your presence today confirms your unwavering commitment to Nigeria’s power development.
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‎“Under your leadership, we’ve achieved critical sector milestones in under two years,” he said.
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‎He described the Electricity Act 2023 as a breakthrough for decentralising and liberalising the market.
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‎The administration also introduced the first Integrated National Electricity Policy in 24 years.
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‎Adelabu said over $2 billion in private capital was attracted for grid expansion projects.
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‎He reported that revenue rose by 70%, from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
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‎This increase helped cut government subsidies by more than ₦700 billion.
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‎Installed generation capacity reached 14,000 MW, with 5,801 MW achieved on March 4.
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‎Daily energy delivery hit a record high of 120,370 megawatt-hours.
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‎There was no national grid collapse in 2025, due to the Presidential Power Initiative.
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‎This initiative added over 700 MW to transmission capacity.
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‎He noted 300,000 smart meters were delivered under the ₦700 billion Presidential Metering Initiative and World Bank DISREP.
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‎However, Adelabu warned that liquidity issues threaten to undo recent gains.
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‎“The debt overhang could lead to a total shutdown of generation assets,” he said.
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‎He urged the President to approve phased payments to GENCOs without delay.
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‎He called for sustained structural reforms to stabilise the power sector.
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‎Business leaders Tony Elumelu and Kola Adesina also urged swift government intervention.
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‎“Mr President, the banks are threatening foreclosure. Not because of poor performance, but due to unpaid debts,” Elumelu said.
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‎He praised Tinubu for restoring investor confidence and oil production.
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‎“Before 2023, we lost 97 per cent of daily oil output. Today, we retain 98 per cent. That’s real progress,” Elumelu said.
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‎Adesina also highlighted the urgent need for liquidity and reliable gas supply.
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‎“Liquidity is the lifeblood of power generation. Without it, Nigeria’s development will suffer,” Adesina said.
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‎He said underperforming plants in Afam lack gas due to unpaid suppliers.
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‎“We suggest unlocking 800 million cubic feet of gas via NLNG for plant supply,” he said.
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‎The meeting was attended by top government officials, regulators, and power sector stakeholders.
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‎Present were the Chief of Staff, Minister of Finance Wale Edun, and Minister of Information Mohammed Idris. (NAN) (www.nannews.ng)
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‎Edited by Kamal Tayo Oropo