President Bola Tinubu has announced a bold ₦4 trillion bailout initiative aimed at resolving a decade-long debt crisis crippling Nigeria’s power generation companies (GENCOs), with a pledge of transparency, patience, and systemic reform to build a resilient electricity sector.
In a high-stakes meeting held at the Presidential Villa on Friday, President Tinubu appealed to power generation firms for time to complete the audit and verification of liabilities owed by the Federal Government, while reaffirming his administration’s commitment to a stable, investor-friendly electricity market.
“We are not here to deodorize the past—we are here to build a credible future,” Tinubu told GENCO representatives led by retired Colonel Sani Bello of the Association of Power Generation Companies (APGC). “I accept the liabilities I inherited, but I must ensure they are verified and just.”
A ₦4 Trillion Lifeline: Bailout for a Sector on the Brink
The federal government, through the Debt Management Office (DMO), has initiated a ₦4 trillion bond programme to address the liquidity vacuum threatening Nigeria’s power sector. According to Special Adviser on Energy, Mrs. Olu Verheijen, this figure represents validated and pending claims by GENCOs stretching back to 2015.
While GENCOs have submitted claims totaling ₦4 trillion, only ₦1.8 trillion has been fully validated thus far. The process remains ongoing, with the final figure subject to negotiation and downward revision.
“We’ve reviewed power purchase agreements and gas supply deals with 27 GENCOs. The initial figures are substantial, but not all claims are final,” Verheijen said. “This bond issuance is anticipatory and contingent on validation. Only verified debt will be honored.”
A Sector Reawakening: Progress Amid Crisis
Despite longstanding challenges, the Tinubu administration is being credited with transformative progress. Minister of Power, Chief Adebayo Adelabu, cited landmark achievements:
-
14,000 MW installed capacity, up from 13,000 MW
-
Record peak generation of 5,801 MW on March 4, 2025
-
120,370 MWh in daily delivery, an all-time high
-
₦1.7 trillion in sector revenue for 2024, up 70% from ₦1 trillion in 2023
-
Over $2 billion in private capital attracted for infrastructure
-
Zero grid collapse in 2025, attributed to 700MW added through the Presidential Power Initiative
Adelabu also highlighted the newly signed Electricity Act, 2023, which liberalizes the sector, and the first Integrated National Electricity Policy in 24 years.
However, he warned of imminent collapse if liquidity constraints are not urgently resolved: “We risk a nationwide shutdown of generation assets. We urge the President’s support to settle part of the debt over a defined period.”
Voices from the Frontline: GENCOs Appeal for Urgency
Industry titans Tony Elumelu and Kola Adesina issued stark warnings on the sector’s fragility, citing mounting bank debts and unpaid gas supply contracts.
“We’re not failing due to inefficiency,” said Elumelu, Chairman of Transcorp. “We’re failing because we’re owed trillions. Without relief, the banks will come for us.”
Elumelu praised Tinubu for stabilizing oil production and financial markets: “Before you came, we lost 97% of daily oil output. Today, we retain 98%. That’s transformation. But power is the enabler of that success.”
Adesina raised concerns about critical gas shortages: “Without liquidity, plants stall. We propose unlocking 800 million cubic feet of gas via NLNG for the Afam axis to prevent total shutdown.”
An Appeal for Patience and Reform
President Tinubu urged banks and financial stakeholders to show restraint.
“To our friends in the banking sector, please avoid foreclosures,” the President said. “Sharpen your pencils, but keep an eraser handy. We must persevere together.”
He reiterated that electricity is “the most important discovery in the last 1,000 years,” vital not just for growth but for human dignity.
“We are committed to a market-driven electricity sector. But first, we must clean up the past to stabilize the future,” he said.
Structural Reform and Investor Confidence
Officials present at the meeting—including Chief of Staff Femi Gbajabiamila, Finance Minister Wale Edun, and Information Minister Mohammed Idris—emphasized that the administration’s reforms are boosting investor confidence.
Adelabu concluded: “This administration has done more for the power sector in two years than past decades. But these gains could vanish without urgent financial intervention.”
The meeting ended with a consensus: solving the liquidity crisis is the linchpin for sustainable power reform in Nigeria.
Sidebar: Key Stats from Tinubu’s Power Sector Push
-
₦4 trillion GENCO debt under review
-
₦1.8 trillion verified so far by NBET
-
₦1.7 trillion 2024 sector revenue
-
Zero grid collapses in 2025
-
700MW new transmission capacity
-
300,000 smart meters delivered
-
$2B+ private investment since 2023
Editor’s Note: As Nigeria grapples with its long-standing power crisis, the stakes have never been higher. The Tinubu administration’s latest intervention could either unlock a new era of energy prosperity—or expose deeper fissures in a system long in need of rescue.
Leave a comment