‘We’ll avert power collapse’: FG vows to pay GenCos N4trn debt

The Federal Government has vowed to urgently address the N4 trillion debt crippling Nigeria’s power generation sector.

This followed talks between the Minister of Power, Adebayo Adelabu, and the Chairmen of Generating Companies of Nigeria (GenCos) in Abuja on Tuesday, April 29, 2025.

The minister’s spokesman, Bolaji Tunji, in a statement on Sunday, May 4, said the move aims to avert an imminent collapse of the power infrastructure in the country.

Tunji quoted Adelabu as assuring GenCos executives that the government would prioritise immediate payment of the N4 trillion debt, while the balance would be defrayed through other debt instruments.

He said this would be proposed in a meeting being planned between President Bola Tinubu and GenCos’ leadership.

“There is need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instrument in promissory notes to pay the rest,” Adelabu said.

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Adelabu assured of the payment of the outstanding balance within six months through financial instruments such as promissory notes.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated, adding that Tinubu would meet with GenCos leadership to fast-track the process.

The GenCoS were led by the Chairman of Mainstream Energy Solutions who is also the Chairman of Association of Power Generating Companies (APGA), Col. Sani Bello, who had earlier sounded the alarm over the sector’s dire state, citing the N4 trillion debt as a critical threat to operations.

The Star