The minister of power, Adebayo Adelabu, on Sunday, said a meeting has been scheduled between President Bola Tinubu and the leadership of the power generation companies (GenCos) over a N4 trillion debt, warning Nigerians to prepare to pay higher electricity tariffs once subsidy is removed in the power sector.
Mr Adelabu said that the meeting was scheduled with a view to finding a common ground to settle the debt owed the GenCos.
Bolaji Tunji, special adviser, strategic communications and media relations to the minister of power, said this in a statement in Abuja on Sunday.
Mr Adelabu assured that the federal government would immediately pay a significant portion of the debt, while the balance would be settled using financial instruments such as promissory notes within six months.
Mr Adelabu stated that the planned meeting with Mr Tinubu aims to chart a viable course for resolving the mounting debt, which has severely strained the country’s power infrastructure.
He warned of an impending collapse in the sector if swift interventions are not made.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Mr Adelabu said.
He assured the GenCos that the dederal government would prioritise an immediate cash payment of a significant portion of the debt, while the outstanding balance would be cleared through promissory notes and other financial instruments within six months.
Acknowledging the government’s own role in the sector’s challenges, Mr Adelabu pledged not only to clear the debt backlog but also to implement structural reforms that would remove operational bottlenecks.
He emphasised the need for full liberalisation of the power sector and called for the adoption of cost-reflective tariffs.
“Citizens must pay the appropriate price for the energy consumed.
“The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians, but we must realise that our economy cannot sustain blanket subsidies indefinitely,” he said.
The minister also unveiled plans to review existing regulations to lower levies and enhance market stability.
He urged GenCos to partner with the government in raising public awareness on efficient electricity use and tariff realities.
The GenCos were represented by Col. Sani Bello (Rtd), chairman of Mainstream Energy Solutions, and who is also the chairman of Association of Power Generating Companies.
Mr Bello warned that persistent liquidity challenges had left GenCos unable to service loans or maintain critical infrastructure.
“Without urgent intervention, the entire power ecosystem could collapse,” he said.
Kola Adesina, chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency.
He said that reliable power supply was fundamental to the survival of industries, homes, and health facilities.
Joy Ogaji, chief executive officer (CEO) of Association of Power Generation Companies, listed the systemic challenges undermining GenCos, including chronic payment defaults, erratic gas supply, and forex instability.
She lamented the steep depreciation of the naira—from N157/$1 in 2013 to N1,600/$1 in 2024. saying it had devastated GenCos’ ability to meet maintenance obligations and repay loans.
“GenCos have borne unsustainable risks from grid failures to unproductive taxes while remaining patriotic,” she said.
