President Bola Tinubu is set to meet with the leadership of electricity-generating companies (GenCos) to address the N4 trillion debt owed to the power sector.
The meeting aims to urgently address the debt crisis, which has threatened the stability of the power infrastructure in the country.
Minister of Power, Adebayo Adelabu, assured GenCos executives that the government would prioritize immediate payment of a significant amount of the debt, while the balance would be defrayed through other debt instruments.
Adelabu emphasized the need for a substantial cash payment, with the remainder to be paid through promissory notes within six months.
He acknowledged the government’s role in the sector’s struggles and pledged to implement reforms to ease operational bottlenecks.
The minister also urged Nigerians to embrace cost-reflective tariffs, while the government would provide targeted subsidies for economically disadvantaged Nigerians.
The GenCos have warned of an imminent collapse of the power ecosystem due to liquidity challenges, inability to secure loans, and maintain infrastructure.
They cited chronic payment defaults, erratic gas supply, and foreign exchange volatility as major challenges undermining their operations.
The meeting between President Tinubu and GenCos leadership is expected to fast-track the process of resolving the debt crisis and stabilizing the power sector.
