Electricity generation companies (Gencos) in Nigeria have urged President Bola Tinubu to promptly schedule a long-awaited meeting over the staggering N4.7 trillion debt owed to them by the Federal Government. The Gencos, under the umbrella of the Association of Power Generation Companies (APGC), are pressing for urgent engagement to prevent a collapse of the nation’s power infrastructure.
Speaking exclusively to journalists, the Managing Director and CEO of the APGC, Dr. Joy Ogaji, revealed that while the Federal Government had recently promised decisive action, no date has yet been fixed for the crucial meeting with the President.
“We are hopeful, but the urgency cannot be overstated. The liquidity crisis in the power sector threatens national stability,” Ogaji said. “We have outlined all our concerns and demands in a formal letter to the presidency. Now we await action.”
The demand for a presidential audience comes on the heels of a high-level meeting between the Minister of Power, Adebayo Adelabu, and power generation stakeholders in Abuja. The meeting, which addressed the deepening financial crisis in the power sector, concluded with a pledge that President Tinubu would soon meet with the leadership of the Gencos to discuss practical payment timelines.
Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed that part of the debt would be paid immediately, while the rest would be settled using promissory notes and other financial instruments over the next six months.
According to industry data, the Gencos are currently owed N2 trillion for power supplied in 2024 alone, in addition to legacy debts amounting to N1.9 trillion. The remaining balance comprises interest charges and accumulated shortfalls from past payments.
At the Abuja meeting, sector leaders sounded the alarm over the threat of operational collapse. Retired Colonel Sani Bello, Chairman of Mainstream Energy Solutions and head of the Gencos’ forum, warned that the liquidity shortfall had crippled power generation capacity.
“Without immediate intervention, the entire ecosystem is at risk. Gas suppliers are owed, maintenance is delayed, and lenders are losing confidence in the sector,” Bello said.
Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the warning, describing the crisis as a “national emergency.”
“This is not just about Gencos—it’s about homes, hospitals, and industries. Nigeria’s economy cannot grow without stable electricity,” Adesina stated.
Ogaji noted that the depreciating value of the naira has further worsened the Gencos’ financial position. “From N157 to a dollar in 2013 to over N1,600 today—this has wrecked our budget forecasts and made loan servicing nearly impossible. We’re bearing risks no business should endure, including tax pressure and constant grid collapses,” she said.
The APGC insists that without substantial financial support and immediate policy reforms, the government’s ongoing electricity reform agenda may be derailed. The companies are also calling for improved gas supply agreements, foreign exchange stabilization mechanisms, and a reliable debt settlement roadmap.
In response to these escalating concerns, Minister Adelabu reaffirmed the administration’s commitment to preventing a full-blown sectoral collapse. “We recognise this as a national emergency. We are committed to paying a substantial portion of the debt now, and mapping out a sustainable plan for the rest,” he said.
While no official date has been set for the meeting with President Tinubu, expectations remain high that the presidency will act swiftly to avert further deterioration of Nigeria’s power sector.