President Bola Tinubu has assured electricity generation companies (GENCOs) that his administration will resolve the ₦4 trillion debt owed them by the federal government. The President made this promise during a meeting with members of the Association of Power Generation Companies at the Presidential Villa in Abuja on Friday.
The GENCOs, led by Col. Sani Bello (rtd), raised concerns about the longstanding unpaid debts, warning that failure to settle them could lead to a total shutdown of power generation in the country.
President Tinubu appealed for more time, saying his government is working to verify and validate all claims before making payments. He said the debts, inherited from past administrations, must be reviewed with full transparency.
“I accept the liabilities of my predecessors, but that must be based on credibility and proper verification,” he said.
The President’s Special Adviser on Energy, Mrs. Olu Verheijen, revealed that an anticipatory approval has been given for a ₦4 trillion bond programme to tackle the liquidity crisis in the sector.
She explained that the debt is a result of unfunded tariff shortfalls and market gaps that have built up since 2015. Of the ₦4 trillion claimed by GENCOs, ₦1.8 trillion has been validated so far.
Minister of Power, Chief Adebayo Adelabu, praised the President’s commitment to the power sector. He said the Tinubu administration has attracted over \$2 billion in private investment and increased annual revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024. He also confirmed that Nigeria recorded its highest-ever daily energy delivery in March 2025.
Despite the progress, Adelabu warned that the sector is in urgent need of funds to remain stable and continue improving.
Business leaders Tony Elumelu and Kola Adesina, who also attended the meeting, called for immediate government action. They said GENCOs are under pressure from banks and risk foreclosure if debts are not paid.
“Mr. President, we’ve come to you as a last hope,” Elumelu said. “This is not about politics. Without power, Nigeria’s progress will stall.”
President Tinubu reaffirmed his belief in a market-driven power sector and called on all stakeholders—including banks, to show understanding while the government works to resolve the issue.
“We are not running from our responsibilities,” Tinubu said. “Let’s work together and build a better future for our country.”
