In an emergency move to to avert the collapse of Nigeria’s electricity supply chain, President Bola Tinubu is billed President Bola Tinubu to meet the leadership of the nation’s power-generating companies over the staggering N4 trillion debt crippling the sector.
The Gencos had reportedly warned the Federal Government over the continued accumulation of debts comprising N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.
Power Minister, Adebayo Adelabu, had met the GenCos chairmen in Abuja, on Tuesday as fears of a possible grounding of the national grid because of liquidity constraints, heightened
His Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed the planned meeting meeting between President Bola Ahmed Tinubu and GenCos’ leadership.
Ge said in a statement on Sunday, that the Federal Government had decided ed to settle a large portion of the N4 trillion debt immediately to rescue the national grip from what could be a calamitous disaster.
Tunji added that the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He said this would be proposed in a meeting being planned between President Bola Ahmed Tinubu and GenCos’ leadership.
According to him, “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,” Adelabu said.
Describing the situation as a national emergency, he stressed the Federal Government’s determination to prevent a collapse of the power sector.
His words, “We recognize the urgency of this matter. The government is committed to resolving this debt to stabilize the sector and prevent further crisis.”
Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), who led the GenCos to the meeting, warned that the sector faced a looming collapse because of the the whopping debt among other challenges.
