Tinubu promises to look into FG N4tn debt to GENCOS

Tinubu promises to look into FG N4tn debt to GENCOS

President Bola Tinubu on Friday appealed to power generation companies (GENCOs) to give the federal government more time to complete the verification and validation of longstanding debts owed to them.

During a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja, the President assured them of his administration’s commitment to resolving the liquidity challenges in the power sector.

The Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed that a ¦ 4 trillion bond programme has received anticipatory approval from President Tinubu to address the liquidity shortfall in the sector.

President Tinubu acknowledged the historic liabilities inherited from previous administrations and pledged transparency and fairness in addressing them:

“I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.”

The President emphasised the need for patience from GENCOs and financial institutions, noting that government agencies are actively engaging audit and legal firms to scrutinise the claims.

READ ALSO:

• WAFCON 2024: Ghana defeat South Africa on penalties to win bronze
• SDP crisis worsens, Gabam, Agunloye factions lose out as Modibo emerges new chair
• Tinubu govt executing 40 major projects in North – Presidency

“We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers,” he said.

While reaffirming his belief in a market-driven electricity sector, the President said the industry’s long-neglected legacy issues are now receiving the attention they deserve.

“This is a longstanding issue that is now being dealt with. I know how much we have been able to save on fuel subsidies. We introduced the alternative, CNG, to bring relief back to the people.”

President Tinubu also emphasised the government’s commitment to creating a stable investment environment and avoiding extreme measures, such as bank asset foreclosures, against the generation companies.

“Your Excellency, your presence at this meeting is a clear testament to your unwavering commitment to the sustainability, stability, and long-term development of Nigeria’s power sector. Under your leadership, we have recorded critical milestones in less than two years,” the Minister said.

Adelabu said the Tinubu administration signed into law the Electricity Act, 2023, which decentralises and liberalises the electricity market. This was the first legislation signed by the President upon assuming office.

He noted that the administration has launched Nigeria’s first Integrated National Electricity Policy in 24 years to drive coherence in sector planning and delivery.

He disclosed that over $2 billion in new private capital has been attracted to expand electricity access nationwide. At the same time, the sector’s annual revenue has grown by 70 per cent—from ¦ 1 trillion in 2023 to ¦ 1.7 trillion in 2024—resulting in a reduction of government subsidy obligations by over ¦ 700 billion.

He added that installed generation capacity has grown from 13,000 MW to 14,000 MW, with an all-time peak generation of 5,801 MW and a record maximum daily energy delivery of 120,370 MWh, achieved on March 4, 2025.

According to him, there has been no national grid collapse in 2025, a direct result of interventions under the Presidential Power Initiative, which has added over 700MW of transmission capacity.

He reported significant progress in narrowing Nigeria’s metering gap through the ¦ 700 billion Presidential Metering Initiative, funded via FAAC, and the World Bank-supported Distribution Sector Recovery Programme (DISREP), which has already delivered 300,000 smart meters out of 3.45 million procured.

• Plateau: 27 victims of bandits’ attack set for mass burial
• UNILAG to commence post-UTME online registration July 28
• Lady arrested in Lagos for mixing harmful agents with spoiled yam flour (video)

While acknowledging these strides, Adelabu cautioned that the sector is grappling with an urgent liquidity crisis that could undermine the sustainability of ongoing reforms and investments.

“Mr. President, given the grave implications of this debt overhang, including the risk of a nationwide shutdown of generation assets, I humbly seek your immediate support for defraying these obligations, even if partially, over a defined period,” the Minister appealed.

He urged the President to continue supporting structural reforms to ensure a resilient and financially viable power market.

In separate remarks, business leaders Tony Elumelu and Kola Adesina appealed for urgent intervention to preserve operations and encourage further investment in the sector.

“Mr. President, we’ve come to you as a last hope. The generating companies are heavily indebted to banks, and foreclosure threats are real, not because we’re not doing our jobs, but because the system owes us trillions,” Elumelu said.

He commended the Tinubu administration for restoring the integrity of oil production and banking stability.
“Before you took office in 2023, we lost 97% of our daily oil production. Today, we are retaining 98%. That’s transformation. Investors are seeing greater stability and predictability,” he said.

On electricity, Elumelu added: “We don’t need power to complete your transformation, we need power to enable it. Power is critical to unlocking Nigeria’s full potential. We urge you to help solve this debt problem.”

Adesina reiterated the need for immediate liquidity support while raising concerns over gas supply shortfalls.
“Liquidity is the oxygen of our business. Without urgent intervention, generation capacity will stall, and Nigeria’s industrial and economic ambitions will be jeopardised.

“The plants in the Afam axis are underperforming because we have not paid gas suppliers. We propose unlocking 800 million cubic feet of gas through NLNG to boost supply to these power plants,” he said.

The meeting was attended by the Chief of Staff to the President, Femi Gbajabiamila; the Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun; the Minister of Information and National Orientation, Alhaji Mohammed Idris; and other senior government officials, regulators, and stakeholders in Nigeria’s electricity industry.

Tinubu promises to look into FG N4tn debt to GENCOS