Fidelity Advert
POWELL Ad

President Bola Tinubu is set to convene with the leaders of Nigeria’s power-generating companies in an urgent effort to tackle the N4 trillion debt that poses a serious threat to the country’s electricity supply chain.

This initiative follows a significant meeting on Tuesday, where the Minister of Power, Adebayo Adelabu, engaged with the chairmen of the Generation Companies (GenCos) in Abuja. Concerns are rising over the potential collapse of the national grid, attributed to ongoing liquidity issues within the sector.

A statement from the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, revealed that the Federal Government plans to address a large portion of this debt immediately, with the remainder to be settled through financial instruments such as promissory notes over the next six months.

“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest,” stated Adelabu.

He underscored the government’s commitment to averting a collapse of the power sector, labelling the situation as a national emergency. “We recognize the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he asserted.

The GenCos, represented by the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), highlighted the imminent risk of a sector collapse due to the escalating debt and ongoing liquidity challenges.

The GenCos have previously cautioned the Federal Government about the accumulating debts, which now exceed N4 trillion. This debt includes N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.

LEAVE A REPLY

Please enter your comment!
Please enter your name here