Electricity generation companies (Gencos) in Nigeria are calling on President Bola Ahmed Tinubu to urgently fix a date for the long-awaited meeting over the rising debt crisis in the power sector, which now stands at a staggering ₦4.7 trillion. The Gencos say the delay in holding the meeting is fueling growing concerns about the financial sustainability of their operations and the stability of the national electricity grid.
The call comes after a high-level engagement between the Minister of Power, Adebayo Adelabu, and chairmen of the Gencos in Abuja. That meeting, which was held in response to deepening liquidity challenges and fears of a potential collapse of the power grid, concluded with a government promise that President Tinubu would personally meet with the Gencos to address their concerns.
However, several weeks after the commitment was made, no date has been confirmed.
In an interview with our correspondent, Dr. Joy Ogaji, Managing Director and Chief Executive Officer of the Association of Power Generation Companies (APGC), stated that while the Gencos remain cautiously optimistic about the government’s assurances, the delay in scheduling the meeting is worrying.
“We are yet to be informed of a specific date. But the situation is urgent, and we hope the meeting with the President happens as soon as possible,” she said.
Ogaji noted that the APGC has formally submitted a detailed letter to the Federal Government outlining the current challenges faced by Gencos and their expectations from the proposed meeting with the President.
According to her, some of the critical issues highlighted include erratic gas supply, non-payment for electricity generated, and foreign exchange pressures, which have made it nearly impossible for companies to meet their operational obligations or maintain generation assets.
She added that the massive depreciation of the naira from N157/$1 in 2013 to over N1,600/$1 in 2024 has made servicing of dollar-denominated loans and maintenance of power infrastructure extremely difficult.
“Gencos have continued to operate in good faith despite taking on unsustainable risks. From frequent grid collapses to poor market remittances and harsh taxes, we have remained patriotic. But this cannot continue,” Ogaji stated.
The power companies said they are currently owed N2 trillion for electricity generated and supplied in 2024 alone, with an additional ₦1.9 trillion in legacy debts still outstanding. They argue that the current situation poses a major threat to national energy security, and could lead to shutdowns if not urgently addressed.
In response to the crisis, the Minister of Power, Adebayo Adelabu, through his Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, disclosed that the government had resolved to settle a significant part of the debt immediately. The remaining obligations, according to him, would be settled through financial instruments such as promissory notes over the next six months.
“Government is committed to resolving this issue. A meeting with the President is being arranged where these proposals will be tabled,” Tunji said in the statement.
Industry observers note that despite past promises, delays in financial interventions and policy enforcement have undermined confidence in the power sector. Stakeholders are warning that if urgent measures are not taken, the national grid may be exposed to increased instability, which could lead to more frequent blackouts.
This crisis comes at a time when electricity generation and supply in Nigeria remain far below demand, with less than 5,000 megawatts available for a population of over 200 million.
Analysts say resolving the financial bottlenecks in the sector will require a combination of executive commitment, transparent disbursement of funds, and enforcement of payment discipline among market participants.
As the nation awaits a date for the crucial meeting with President Tinubu, the Gencos say they are hopeful but want action, not just promises.
