President Bola Tinubu has assured power generation companies (Gencos) of the Federal Government’s commitment to settling outstanding debts, pending a thorough audit process.
This assurance was given during a meeting with the Association of Power Generation Companies at the State House on Friday in Abuja.
President Tinubu reiterated his administration’s commitment to resolving liquidity challenges affecting Nigeria’s electricity sector.
He also emphasised the need for a thorough verification process to ensure the authenticity of the debts.
The President furthrr urged power firms and financial institutions to remain patient during the verification process.
Tinubu expressed his support for a market-driven electricity sector and acknowledged the unresolved legacy issues that have plagued the industry.
He highlighted the progress made in saving significantly on fuel subsidies and introducing Compressed Natural Gas (CNG) to ease pressure on citizens.
Tinubu appealed to banks for cooperation in resolving financial constraints, urging them to be prudent but flexible. He emphasized that stable electricity is crucial to national growth and citizens’ wellbeing.
Also, the Special Adviser the President on Energy, Ms. Olu Verheijen, revealed that President Tinubu approved a N4 trillion bond to ease power sector liquidity issues.
She attributed the crisis to years of unpaid tariff shortfalls and wide market gaps.
The Federal Government owes a verified N4 trillion debt to Gencos, dating back to 2015.
Verheijen confirmed that the Nigerian Bulk Electricity Trading (NBET) has validated N1.8 trillion of the claims, with N200 billion in unfunded subsidies accumulated, increasing the government’s liability. The verified exposure stands at N4 trillion as of April 2025.
On his part, the Minister of Power, Adebayo Adelabu, praised Tinubu’s leadership and recent sector reforms, confirming the President’s unwavering commitment to Nigeria’s power development.
He noted that the development was a step towards resolving the power sector crisis and promoting economic growth in Nigeria.
