Tinubu to meet Gencos over N4TRN debt

Nigerian power-producing companies (Gencos) have issued a clear warning, highlighting that the accumulation of more than ₦ 4 trillion in unpaid debts threatens to plunge the state electricity supply into the critical crisis, which encourages emergency interventions by the Tinubu Bola President.

Increased debt, consisting of ₦ 2 trillion for the power provided in 2024 and ₦ 1.9 trillion in inheritance debt, is a central edition at a recent high-level meeting between the Minister of Power, Adebayo Adelabu, and the leadership of the Gencos in Abuja.

Gencos, led by the Chairperson of the Main Energy Solution and the Head of the Association of Power Plant Companies, Colonel Sani Bello (Retd), painted a terrible image from the staggered sector on the verge of destruction due to the challenges of persistent liquidity.

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Responding to the urgent appeal of Gencos, the federal government has promised to complete most of the debt immediately, with the rest will be cleaned through financial instruments such as promissory letters in the next six months. This commitment, as expressed by the Minister’s Special Advisor regarding Strategic Communication and Media Relations, Bolaji Tunji on Sunday, will be formalized in the future meeting between Bola President Ahmed Tinubu and Gencos’s leadership.

Minister Adelabu acknowledged the severity of the government situation and determination to prevent potential disasters. “We recognize the urgency of this problem. The government is committed to resolving this debt to stabilize this sector and prevent further crisis,” he said.

However, Gencos, through their representatives, Colonel Sani Bello (RETD), has stressed that direct and significant cash injection is very important to prevent the collapse of national networks.

“There is a need to pay a large amount of debt in cash. At a minimum, let’s pay a substantial amount, then ask for debt instruments in the promissory letter to pay the rest,” Bello insisted, underlines the dangerous financial position of the company that generates electricity.

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