President Bola Tinubu is set to meet with power distributors companies in Nigeria to address the 4 trillion naira electricity debt. According to report, the meeting is scheduled to prevent the collapse of the national grid due to liquidity constraints in the sector.
Gencos had issued a warning to the federal government over the continued accumulation of debts which is now 4 trillion naira. According to the power companies, the government owed them 2tn for power supplied in 2024 and 1.9tn in legacy debts.
The chairman of Gencos, Sani Bello, warned that the sector is likely to shut down due to debt and persistent liquidity challenges. Bello disclosed that the debt burden has weakened operations and limited access to funding or maintenance of the sector.
However, the federal government has pledged to take effective measures to reduce the money owed to the power companies. Speaking on the issue, the Minister for Power, Adebayo Adelabu noted that the government is pushing for modifications that would solve operational difficulties.
He added that there are plans to implement regulatory reforms aimed at enhancing market stability and reducing levies. Bolaji Tunji, Special Adviser on Strategic Communications, revealed the government’s plan to promptly settle a significant portion of the debt.
The special adviser added that the remainder of the debt would be cleared through promissory notes within the next six months. He continued that the plan would be proposed in a meeting between the president and the Gencos’ leadership.
Tunji describes the national grid collapse as a national emergency that the government is determined to prevent. He noted that the debt issue will be resolved to stabilize the power sector and prevent further crises.
However, Tunji stated that President Tinubu is yet to set a date for the meeting yet, as discussions are still ongoing among the involved parties.
