Tinubu Meets GENCOs, Vows to Resolve ₦4 Trillion Power Sector Debt

President Bola Tinubu met with the Association of Power Generation Companies (GENCOs) at the Presidential Villa on Friday, reaffirming his administration’s commitment to resolving the estimated ₦4 trillion owed to operators in Nigeria’s power sector.

The meeting, led by Col. Sani Bello (rtd), focused on the liquidity crisis crippling electricity generation in the country. Tinubu acknowledged the inherited debts, stating: “I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds.” He called for time to verify and validate the financial claims, assuring GENCOs that the government is working toward a sustainable solution.

He emphasized the importance of a market-driven electricity system and called for patience and cooperation, even appealing to banks to avoid foreclosing on indebted power firms. “Sharpen your pencils, but keep an eraser handy,” he urged.

Special Adviser on Energy, Olu Verheijen, disclosed that the government has approved a ₦4 trillion bond programme to address a decade-long shortfall caused by unfunded tariff and market gaps. So far, ₦1.8 trillion has been verified, while additional claims are still under review. She noted, “Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO.”

Minister of Power, Adebayo Adelabu, described the debt as dangerous, warning of a possible nationwide shutdown if urgent payments aren’t made. He highlighted recent gains, including a 70% revenue increase and zero grid collapses so far in 2025, but warned that these could be reversed without financial support.

Business mogul Tony Elumelu also addressed the gathering, stressing the urgency: “We’ve come to you as a last hope. The generating companies are heavily indebted to banks, and foreclosure threats are real… We don’t need power to complete your transformation, we need power to enable it.”

Kola Adesina added that liquidity is the lifeline of the sector and proposed unlocking 800 million cubic feet of gas through NLNG to revive underperforming plants.

Also present were top officials including Finance Minister Wale Edun, Information Minister Mohammed Idris, and Chief of Staff Femi Gbajabiamila, as the Tinubu administration works to restore stability and investor confidence in Nigeria’s power industry.