Despite promises from the Ministry of Power that President Bola Ahmed Tinubu would meet with electricity generation companies over the N4.7 trillion debt owed to them, nearly two months have passed without any word or action from the Federal Government. This silence has deepened frustration within the power sector, which is now battling a worsening liquidity crisis.
In May 2025, the Special Adviser to the President on Energy, Olu Verheijen, had announced that the Federal Government planned to pay N2 trillion of the total N4.7 trillion debt before the end of the next quarter. This plan raised hopes among operators, who were struggling to sustain operations due to mounting unpaid invoices and a shortage of funds to buy gas for generation.
But since the announcement, the generation companies, known as GenCos, say they have not been contacted for any meeting or discussions. The Chief Executive Officer of the Association of Power Generation Companies (APGC), Dr Joy Ogaji, told our correspondent that there has been no follow-up communication from the Federal Government. “Not yet. We are still waiting,” she said when asked if the promised meeting with the President had been scheduled.
The Minister of Power, Adebayo Adelabu, had previously assured that a meeting between the President and the GenCos was in the works. His media aide, Bolaji Tunji, reiterated that efforts were ongoing to fix a date. “Once a time is fixed, it would be conveyed to them. The minister is working on it,” he stated in a brief response to inquiries.
The debt situation has become dire, with GenCos warning that continued non-payment could force them to shut down operations. Dr Ogaji disclosed that the power firms are owed N2 trillion for electricity supplied in 2024 alone, in addition to N1.9 trillion in legacy debts. A further N800 billion has accumulated in recent months, according to industry sources.
A detailed invoice seen by our reporter showed that from January to December 2024, the total bill submitted by GenCos to the government was N2.7 trillion. Of this, only N762.1 billion was paid, meaning the companies recovered just 28.18 percent of their revenue for the period. The unpaid balance now exceeds N1.94 trillion.
Operators fear that many gas-fired thermal plants, which depend on regular payments to buy gas from suppliers, may soon be forced offline. Transcorp Power, for example, revealed it is owed about N650 billion. The company said the huge debt burden is affecting its capacity expansion plans and its ability to pay for gas.
Gas suppliers have reportedly started threatening to cut off GenCos that cannot meet their financial obligations. If this happens, it could lead to a major drop in power generation and possible collapse of the national grid. Industry observers are concerned that without urgent intervention, Nigeria’s electricity supply could get worse in the coming weeks.
The planned meeting between President Tinubu and the GenCos was first announced after a high-level meeting held in Abuja in May between the Minister of Power and the chairmen of the generation companies. At that meeting, Adelabu had pledged immediate action to ease the burden on GenCos. A statement released on May 5 by his media aide said the Federal Government intended to pay part of the debt in cash and the rest through financial instruments like promissory notes within six months.
Dr Ogaji, who was also present at the meeting, confirmed that the GenCos have submitted a letter to the Federal Government outlining their demands. These include urgent debt payment, stable gas supply, protection from foreign exchange shocks, and an end to unproductive taxation.
She noted that since the electricity industry was partially privatised in 2013, the naira has depreciated significantly, from N157 to $1 to the current rate of about N1,600 to $1. This massive fall in value has made it more expensive for GenCos to maintain plants and service loans.
She also lamented that despite the risks GenCos take to maintain supply, they continue to suffer delays in payment, erratic grid management, and regulatory uncertainty. “Gencos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.
Although the Federal Government allocated N900 billion to the power sector in the 2025 budget, operators argue that this amount falls far short of what is needed to settle the outstanding debts or ensure regular payments moving forward.
For now, the industry remains in limbo, with stakeholders calling for transparency and swift government action. Many believe that only strong political will and urgent financial intervention can rescue the power sector from total collapse.
