Electricity generation companies in Nigeria are pressing for an immediate audience with President Bola Tinubu to address the growing debt crisis in the power sector, which has now reached N4.7 trillion.
Although a date for the proposed meeting has yet to be confirmed, the generation companies are urging the government to act swiftly to prevent a deeper crisis.
Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies, expressed hope that the Federal Government would follow through on its promise to clear the massive debt.
She emphasized the need for urgency and disclosed that a detailed letter outlining the concerns of Gencos has already been sent to the authorities.
The demand comes after a recent strategic meeting in Abuja between the Minister of Power, Adebayo Adelabu, and key stakeholders from the generation sector.
The session was convened amidst fears of a possible power grid collapse due to financial instability in the industry.
Following the meeting, the government announced plans for President Tinubu to meet with Genco representatives, signaling intent to resolve the crisis.
According to a statement from Bolaji Tunji, media adviser to the Minister of Power, the administration is planning to immediately offset a portion of the debt while settling the remaining balance through promissory notes over a six-month period.
Ogaji, who participated in the Abuja meeting, outlined several challenges confronting the generation companies, including inconsistent gas supply, non-payment for electricity supplied, and the sharp decline of the naira, which has surged from N157/$ in 2013 to about N1,600/$ today.
This devaluation, she said, has made equipment maintenance and debt servicing increasingly difficult.
Despite enduring significant operational and financial strain, she noted that the generation firms have continued to keep the system running, absorbing risks associated with grid instability and high regulatory costs.
The power companies recently raised alarm over the growing debt, revealing that approximately N2 trillion is owed for electricity delivered in 2024 alone, while an additional N1.9 trillion remains unpaid from previous years.
Minister Adelabu acknowledged the severity of the situation, calling it a national emergency.
He stressed that a significant part of the debt should be cleared in cash to ease liquidity concerns, while the remainder can be settled through financial instruments.
“We must stabilize the power sector,” he said. “This administration is fully committed to addressing the debt burden and ensuring continuous power supply.”
During the meeting, retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and a leading voice for the Gencos, warned that the entire power supply system could face collapse if no urgent intervention is made.
He highlighted how the financial squeeze has disrupted operations and blocked access to funds needed for repairs and expansion.
Similarly, Kola Adesina, who chairs both Egbin Power and First Independent Power Limited, described the crisis as critical. “Electricity powers everything—businesses, homes, hospitals. If this sector fails, everything else follows,” he said.
