By Ikugbadi Oluwasegun
President Bola Tinubu has appealed to power generation companies (GENCOs) to give the federal government more time to complete the verification and validation of longstanding debts owed to them.
This was disclosed on Friday during a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja, the President assured them of his administration’s commitment to resolving the liquidity challenges in the power sector.
The Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed that a ₦4 trillion bond programme has received anticipatory approval from President Tinubu to address the liquidity shortfall in the sector.
President Tinubu acknowledged the historic liabilities inherited from previous administrations and pledged transparency and fairness in addressing them:
The President emphasised the need for patience from GENCOs and financial institutions, noting that government agencies are actively engaging audit and legal firms to scrutinise the claims.
While reaffirming his belief in a market-driven electricity sector, the President said the industry’s long-neglected legacy issues are now receiving the attention they deserve.
President Tinubu also emphasised the government’s commitment to creating a stable investment environment and avoiding extreme measures, such as bank asset foreclosures, against the generation companies.
Describing electricity as “the most important discovery of humanity in the last 1,000 years,” the President reaffirmed that access to electricity is fundamental to economic growth and human dignity.
The Special Adviser to the President, Ms. Verheijen, attributed the liquidity crisis to “a combination of unfunded tariff shortfalls and market shortfalls” that have built up over a decade.
She stated that as of April 2025, the Federal Government is carrying a verified exposure of ₦4 trillion in debts to GENCOs, an accumulation dating back to 2015.
According to her, the Nigerian Bulk Electricity Trading Company (NBET)—the agency that contractually mediates between GENCOs and the government—has validated ₦1.8 trillion of these claims so far.
However, Ms. Verheijen cautioned that the figure remains subject to downward revision, pending final validation.
The Minister of Power, Chief Adebayo Adelabu, commended President Tinubu for the attention given to the power sector, stating that the administration’s reforms have restored investor confidence and improved performance across the electricity value chain.
Adelabu said the Tinubu administration signed into law the Electricity Act, 2023, which decentralises and liberalises the electricity market. This was the first legislation signed by the President upon assuming office.
He noted that the administration has launched Nigeria’s first Integrated National Electricity Policy in 24 years to drive coherence in sector planning and delivery.
He disclosed that over $2 billion in new private capital has been attracted to expand electricity access nationwide. At the same time, the sector’s annual revenue has grown by 70 per cent from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 resulting in a reduction of government subsidy obligations by over ₦700 billion.
In separate remarks, business leaders Tony Elumelu and Kola Adesina appealed for urgent intervention to preserve operations and encourage further investment in the sector.
