President Bola Tinubu will meet with executives of Nigeria’s power generation companies over a ₦4 trillion debt the federal government owes the electricity sector. The meeting is aimed at finding an agreement on how to clear the backlog and prevent further strain on the already fragile power system.
According to a report by the Agency Report, the Minister of Power, Adebayo Adelabu, confirmed that the federal government plans to pay a major portion of the debt immediately. The balance, he said, would be settled within six months using promissory notes and other financial arrangements.
Adelabu acknowledged that government delays and inefficiencies have contributed to the current crisis facing the sector. He also said reforms are coming to eliminate these barriers and improve operations.
He urged Nigerians to accept electricity tariffs that reflect actual production and delivery costs. However, he assured that subsidies would still be available for vulnerable populations.
Power producers have warned that the country risks a total breakdown in electricity generation if financial issues are not resolved quickly. Col. Sani Bello (Rtd), who leads the GenCos, stressed that urgent intervention is needed to prevent systemic failure.
Kola Adesina, Chairman of Egbin Power, described the situation as “a national emergency.” Gas supply disruptions and currency instability are also putting pressure on the sector, according to Joy Ogaji, CEO of the Association of Power Generation Companies.
Adelabu called for a partnership between the government and power companies to educate citizens on the realities of electricity production and billing. He said this would help reduce conflict and improve stability in the industry.
Article updated 4 weeks ago. Content is written and modified by multiple authors.
