President Bola Tinubu has pledged to resolve longstanding debt claims owed to Nigeria’s power generation companies (GENCOs), assuring them of his administration’s commitment to addressing the liquidity crisis crippling the sector.
Speaking during a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja on Friday, the President appealed for patience, saying government agencies are working to verify and validate the claims.
“I accept the assets and liabilities of my predecessors, but that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion,” Tinubu said.
The President assured GENCOs that transparency will guide the resolution process, revealing that the government has already given anticipatory approval for a ₦4 trillion bond programme to clear verified liabilities.
Special Adviser to the President on Energy, Olu Verheijen, said the total debt claims by GENCOs from 2015 to the end of 2023 amount to ₦4 trillion, of which ₦1.8 trillion has so far been validated by the Nigerian Bulk Electricity Trading Company (NBET).
She added that while anticipatory approval for the bond programme is in place, only fully verified claims will be settled.
“The final amount to be issued by the Debt Management Office will only include debts the federal government validly owes. The number is still subject to negotiation and further scrutiny,” she said.
President Tinubu also called on financial institutions to avoid foreclosure threats, assuring them that the government is working on creating a stable investment environment.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” he added.
Minister of Power, Adebayo Adelabu, hailed the President’s leadership, noting that reforms under his administration have restored investor confidence, attracted over $2 billion in private capital, and raised annual sector revenues from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
Adelabu disclosed that electricity generation capacity has grown to 14,000 MW, with Nigeria recording its highest daily energy delivery 120,370 MWh on March 4, 2025.
He also noted that 2025 has seen no national grid collapse, thanks to strategic interventions.
However, he warned that the liquidity crisis threatens to derail the gains recorded, urging the President to fast-track partial defrayment of GENCO debts.
Also speaking, prominent business leaders in the power sector, Tony Elumelu and Kola Adesina, appealed to the President to urgently address the funding crisis and ensure gas supply to power plants.
“Mr. President, we’ve come to you as a last hope. The generating companies are heavily indebted to banks, and foreclosure threats are real—not because we’re not doing our jobs, but because the system owes us trillions,” Elumelu said.
Adesina stressed the importance of unlocking gas supply to underperforming power plants, especially in the Afam axis, calling for support to access 800 million cubic feet of gas through NLNG.
