*President Bola Ahmed Tinubu assures Chairmen of the electricity Generation Companies of his administration’s commitment to resolving the age-old liquidity challenges in the power sector of the Nigerian economy

Gbenga Kayode | 绿帽献妻

President Bola Ahmed Tinubu has conferred with, and appealed to the electricity Generation Companies (GenCos) to give the Federal Government of Nigeria more time to complete its ongoing verification and validation of time-honoured debts owed to the power providers.

Tinubu stated this Friday, July 25, 2025, at a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (Rtd.), in the Presidential Villa, in Abuja, FCT.

The President also assured the Chairmen of the GenCos of his administration’s commitment to resolving the liquidity challenges in the power sector of the Nigerian economy.

Speaking at the stakeholder engagement, Ms. Olu Verheijen, Special Adviser to the President on Energy, disclosed that a N4 trillion bond programme has received anticipatory approval from President Tinubu to address the liquidity shortfall in the sector.

President Tinubu as well acknowledged the historic liabilities inherited from previous administrations, as he pledged transparency and fairness in addressing them forthwith.

I accept assets, liabilities of previous administrations 鈭扨resident

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, Friday quoted President Tinubu to have said: “I accept the assets and liabilities of my predecessors, and there is no question about that.

鈥淏ut 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 Nigerian leader also stressed the need for patience from GenCos and financial institutions.

The concerned government agencies are actively engaging audit and legal firms to scrutinise the claims, stated he.

The President noted: “We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers.鈥�

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

He averred: “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.”

He equally emphasised the Nigerian Government’s commitment to creating a stable investment environment and avoiding extreme measures, such as bank asset foreclosures, against the generation companies.

“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together.”

鈥楨lectricity fundamental to economic growth, human dignity鈥�

Describing electricity as “the most important discovery of humanity in the last 1,000 years,” President Tinubu reiterated that access to electricity is fundamental to economic growth and human dignity.

Ms. Verheijen, Special Adviser to the President on Energy, again, attributed the liquidity crisis to “a combination of unfunded tariff shortfalls and market shortfalls” that have built up over a decade.

The Presidential aide also disclosed that as of April 2025, the Federal Government was carrying a verified exposure of N4 trillion in debts to the GenCos, an accumulation dating back to 2015.

She stated: “We have since sat with 27 GenCos鈥攏ot all of them are here today鈥攁nd reviewed their PPAs and gas sales agreements to understand the legitimacy of their claims.

鈥淭he GenCos claimed about N4 trillion from 2015 to the end of 2023.鈥�

According to her, the Nigerian Bulk Electricity Trading Company (NBET)鈥攖he agency that contractually mediates between GenCos and the Federal Government鈥攈as validated N1.8 trillion of these claims thus far.

Verheijen also explained: “Since that period, we have had N200 billion in unfunded subsidies that have accumulated the federal government’s liability.

“So, as of April 2025, the total exposure that we are carrying at the moment is N4 trillion.鈥�

On anticipatory approval for N4 trillion bond programme

Shedding more light on the Federal Government鈥檚 efforts at resolving the GenCos鈥� outstanding debt issue, Ms. Verheijen, however, cautioned that the figure remains subject to downward revision, pending final validation.

She averred: “While there is an anticipatory approval of this N4 trillion bond programme, it is subject to negotiations and final settlement of agreements.

鈥淥nly the amounts that the Federal Government validly owes are the things that will make it into the issuance by DMO.鈥�

Adelabu: Nigeria attracts $2bn fresh capital to expand electricity access

In his remarks at the meeting, Chief Adebayo Adelabu, Honourable Minister for Power, commended President Tinubu for the attention accorded the power sector.

Adelabu said that the current administration’s reforms had restored investor confidence and improved performance across the electricity value chain in the country.

The Minister also stated: “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.

鈥淯nder your leadership, we have recorded critical milestones in less than two years.鈥�

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 affirmed.

Chief Adelabu 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 also disclosed that over $2 billion in new private capital has been attracted to expand electricity access nationwide.

Simultaneously, the power sector’s annual revenue has grown by 70 percent鈥攆rom N1 trillion in 2023 to N1.7 trillion in 2024鈥攔esulting in a reduction of government subsidy obligations by over N700 billion, the Minister noted.

According to him, 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.

The Minister said there had been no national grid collapse in 2025, attributing the development to interventions under the Presidential Power Initiative, which has added over 700MW of transmission capacity.

He reported equally significant progress in narrowing Nigeria’s metering gap through the 鈧�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.

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

He appealed to Tinubu: “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.鈥�

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

Speaking at the forum, business leaders Tony Elumelu and Kola Adesina also appealed for urgent intervention to preserve operations, and encourage further investment in the power sector.

Elumelu said: “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.鈥�

He commended the Tinubu administration for restoring the integrity of oil production and banking stability in Nigeria.

The boardroom technocrat stated: “Before you took office in 2023, we lost 97 percent of our daily oil production.

鈥淭oday, we are retaining 98 percent. That’s transformation. Investors are seeing greater stability and predictability.鈥�

On electricity, Elumelu noted: “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.”

Upholding Elumelu鈥檚 submissions, Adesina reiterated the need for immediate liquidity support while raising concerns over gas supply shortfalls.

He stated: “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.鈥�

In attendance at the meeting were Rt. Hon. Femi Gbajabiamila, Chief of Staff (CoS) to the President; Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy; Alhaji Mohammed Idris, Honourable Minister for Information and National Orientation, and other top government officials, industry regulators, and stakeholders in Nigeria’s electricity industry, Onanuga stated.

Kindly Share This Story