Sh*ckwave In Power Sector: Tinubu Begins Repayment Of ₦4 Trillion GenCo Debt

Minister of Power, Adebayo Adelabu, has disclosed that President Bola Tinubu is set to hold a crucial meeting with the heads of Nigeria’s power generation companies (GenCos) as part of urgent efforts to resolve a ₦4 trillion debt threatening to destabilize the nation’s electricity sector.

According to Naija News, the announcement comes in the wake of a high-level meeting held on Tuesday, April 29, 2025, in Abuja between Adelabu and GenCos chairmen, amid rising concerns over a potential national grid collapse due to severe funding shortfalls.

GenCos have repeatedly raised alarms over the mounting debt, which has now surpassed ₦4 trillion, warning of dire consequences if immediate action is not taken.

In a statement released on Sunday, May 4, 2025, by Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the minister revealed that the Federal Government plans to immediately pay a significant portion of the outstanding debt, while the balance will be settled through financial instruments such as promissory notes within the next six months.

Adelabu noted that this approach will be discussed during the forthcoming meeting between President Tinubu and GenCo executives.

Calling the situation a “national emergency,” Adelabu stressed the government’s unwavering commitment to averting a collapse of the power sector.

“There’s an urgent need to offset a large chunk of the debt with cash. At the very least, we must make a substantial payment and address the rest through promissory notes,” he said. “The government fully understands the gravity of the issue and is determined to resolve it swiftly to ensure stability in the power sector.”