Power generation companies in Nigeria are calling for an immediate meeting with President Bola Tinubu over the staggering ₦4.7 trillion debt owed to them by the Federal Government, warning of a potential collapse of the national grid if urgent steps are not taken.

Though the Presidency has signaled intentions to engage with the Gencos, no date has been fixed. The firms, under the umbrella of the Association of Power Generation Companies (APGC), are pressing for swift action.

“We need this meeting to happen as soon as possible,” said Dr. Joy Ogaji, Managing Director and CEO of APGC, in a statement to WafricNews. “We have presented our position clearly to the government and are waiting for decisive steps.”

Her remarks follow a high-level meeting in Abuja between the Minister of Power, Adebayo Adelabu, and the leadership of major power generation firms. The talks were held amid growing fears that financial constraints could soon cripple the already fragile electricity sector.

At the meeting, Adelabu assured stakeholders that the government is prepared to act swiftly. According to his media adviser, Bolaji Tunji, the administration plans to make immediate cash payments to reduce the debt burden and settle the balance within six months through promissory notes and other financial instruments.

But the Gencos remain on edge. “We are facing unsustainable financial pressure,” Ogaji said, citing erratic gas supply, non-payment for power already supplied, and steep currency depreciation. “The naira has plummeted from ₦157 to $1 in 2013 to over ₦1,600 today. This has wrecked maintenance budgets and loan repayments.”

Of the total ₦4.7 trillion debt, over ₦2 trillion is tied to power supplied in 2024 alone, with ₦1.9 trillion classified as legacy debt. Another ₦800 billion is reportedly owed through various outstanding obligations. Gencos say the mounting arrears are suffocating operations and deterring critical investment in infrastructure.

Colonel Sani Bello (retd.), Chairman of Mainstream Energy Solutions and a key voice in the power sector, warned that the system is at a breaking point. “If something isn’t done urgently, the entire ecosystem could collapse,” he said.

Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the urgency: “This is no longer just a sectoral issue—it's a national emergency. Industries, hospitals, homes—everything depends on power. We cannot let the system fail.”

Minister Adelabu agreed. “The situation is dire. We must treat this as a national emergency and act now to avoid disaster,” he told stakeholders.

With no meeting date yet confirmed, the pressure is mounting on the Presidency to respond decisively. The Gencos insist that failure to resolve the issue could plunge the country into deeper energy insecurity.


By WafricNews Desk.