Electricity Generation Companies (Gencos), have called on President Bola Tinubu to fast-track a planned meeting with their leadership to address the N4.7 trillion debt owed by the Federal Government.
Although no date has been fixed, the Gencos say the meeting should take place “as soon as possible.”
The appeal follows a recent high-level meeting in Abuja between the Minister of Power, Adebayo Adelabu, and the chairmen of Gencos, amid growing concerns over potential grid collapse linked to liquidity issues in the power sector.
Managing Director and CEO of the Association of Power Generation Companies, Joy Ogaji, expressed cautious optimism about the government’s pledge to settle the outstanding debt.
Speaking to our correspondent, Ogaji confirmed that the Gencos have documented their concerns in a formal letter to the government.
“The meeting with the President should happen as soon as possible,” she said, adding that persistent payment defaults, erratic gas supply, and currency volatility continue to threaten the sector’s stability.
Government Promises Partial Payment
Following the Abuja meeting, the Federal Government announced it would immediately settle a significant portion of the N4.7tn debt. The remainder, according to a statement by Power Minister Adelabu’s media adviser, Bolaji Tunji, will be cleared within six months using financial instruments such as promissory notes.
Tunji also revealed that President Tinubu is expected to meet with the Gencos’ leadership to finalise the resolution plan.
Currency Crash Worsens Sector Woes
Ogaji highlighted the severe impact of Nigeria’s economic instability on power generation operations.
“The dramatic depreciation of the naira—from N157 to $1 in 2013 to N1,600 to $1 now—has crippled maintenance budgets and loan repayments,” she said.
She also pointed to broader systemic challenges, including unreliable grid infrastructure and burdensome taxation.
“Gencos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” Ogaji added.
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