Tinubu Seeks Patience from Power Firms as FG Moves to Settle ₦4 Trillion Debt

President Bola Tinubu has appealed to power generation companies (GENCOs) to grant his administration more time to complete the verification and validation of long-standing debts owed to them. Speaking during a meeting with the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa, Abuja, Tinubu reassured stakeholders of his government’s commitment to resolving the power sector’s liquidity challenges. His Special Adviser on Energy, Mrs. Olu Verheijen, revealed that a ₦4 trillion bond programme has been given anticipatory approval by the President to tackle the sector’s financial shortfall.

Acknowledging the historic liabilities inherited from previous administrations, Tinubu emphasized transparency and accuracy in addressing the debt claims. “I accept the assets and liabilities of my predecessors, but such acceptance must rest on credible grounds. We need to verify and validate the numbers before making commitments,” the President stated. He urged GENCOs and financial institutions to be patient while audit and legal teams review the claims, reiterating his belief in a market-driven electricity sector.

Mrs. Verheijen explained that the liquidity crisis stems from unfunded tariff and market shortfalls that have built up over a decade. As of April 2025, the Federal Government carries a verified exposure of about ₦4 trillion, with ₦1.8 trillion of this already validated by the Nigerian Bulk Electricity Trading Company (NBET). She noted that the figure could be revised downward upon final verification. Minister of Power, Chief Adebayo Adelabu, praised the President’s reforms, citing the passage of the Electricity Act, 2023, and the launch of the Integrated National Electricity Policy. He revealed that over $2 billion in private capital has been attracted to expand electricity access, while annual revenue in the sector has risen from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.

Adelabu, however, warned of a pressing liquidity crisis that could threaten ongoing reforms. He appealed for immediate support to settle the debts to prevent a nationwide shutdown of power generation assets. Business leaders Tony Elumelu and Kola Adesina also stressed the urgency of government intervention, citing heavy debts to banks and gas supply shortages that could hinder generation capacity. “Power is critical to unlocking Nigeria’s potential,” Elumelu told the President, urging decisive action on the sector’s financial issues.

The meeting was attended by key government officials, including the Chief of Staff to the President, Femi Gbajabiamila; Finance Minister Wale Edun; Information Minister Mohammed Idris; and other top stakeholders in the electricity industry.