JamzNG Latest News, Gist, Entertainment in Nigeria
When Nigeria wrestled with a deeper supply of power supply, the president had begun the internal approval process aimed at completing the inheritance debt of more than N2 trillion owed to the Power Plant (Gencos) company.
The plan, said the officials, was to overcome this financial overhang before the end of the next quarter. This is an important step in stabilizing the sick electricity sector in this country.
This update came during the Second Nigerian Electricity Supply Industry (Nesi) stakeholder meeting in 2025, organized by the Nigerian Electricity Regulatory Commission (NERC) in Abuja. Representing the special advisory office for the president of energy, Eriye Onagoruwa, on Monday in Abuja, convincing the stakeholders that the federal government treats this problem with urgency, despite the applicable fiscal constraints.
“We empathize with what was faced with Gencos,” Onagoruwa said. “We are exploring alternative debt instruments, and I can confirm that both the Economic Coordination Minister and the Debt Management Office are in line with this effort.”
He stopped giving a strong time line but noted that progress could be announced at the next quarterly nesi meeting.
What is the problem?
The essence of this problem lies in a multi-year liquidity crisis. The federal government owes the power generation company, it is estimated that the N2 trillion inheritance debt is accumulated as a result of an unpaid invoice for electricity supplied to the national network. These debts have greatly hampered operations, leaving the lack of money and limiting their ability to invest in infrastructure or maintain generation capacity.
New Gencos -Newly raised alarm, warning that debt is now more than N4 trillion when new shortcomings and obligations are included. The Senate Committee on power echoed this concern, revealed that the government owed almost N200 billion every month due to lack of tariffs. Since the beginning of the year alone, the Committee said, electricity producers have not been paid, adding more than N800 billion to a collection of debt.
Also read: If you accuse the political elite of supporting Boko Haram to disrupt the Tinubu government
Why is it important
The power supply in Nigeria is not just a matter of quality of life, this is an economic lifeline. Small business depends on electricity that is consistent for operating, producers need it for production, and millions of homes depend on them for daily life. When the power plant is compromised because of debt, it has a ripple effect throughout the economy.
By starting the payment process, even if through alternative financial instruments, the government hopes to inject liquidity into the system and restore trust among electricity producers.
A larger picture: Reforms in all sectors
The Nesi stakeholder meeting, attended by regulators, operators, and policy makers, also discussed a number of other urgent problems. These include:
- Measurement gap: The main challenge for distribution companies and customers, this gap has caused unreliable billing and distrust. The discussion focused on the initiative of the president’s measurement and the asset meter funds proposed to cover this deficit.
- Electric action 2023: With the decentralization of the electric market, the current state has the right to regulate their own regulation commission. While this opens the door for innovation, experts warn the potential of fragmentation.
- Independent system operation: Nigerian Independent System Operators (NISO) are positioned as stabilizers. Executive Director, Abdu Mohammed Bello, outlines its core mandate: ensuring transparency, operational coordination, and market stability in the midst of reform.
John Akinnawo, Acting Director of Nigeria Bulk Electricity Trading PLC, warned that decentralization should not come at the expense of market cohesion.
“Niso must lead in aligning the operational framework and policies to prevent the fragmented electric landscape,” he said.
What is next?
Stakeholders at the meeting expressed their careful optimism. Updated involvement from the presidential indicates political will, which many people say have been lost in the efforts of past reforms. If the inheritance debt is completed as promised, he can open a traffic jam, increase the capacity of generations, and eventually translated to better services for Nigerian homes and businesses.
For now, the sector, and nation, are waiting for actions to match their intentions. Clear update is expected before the end of the third quarter.
The point is: solving the debt crisis of the electricity sector not just about numbers; It’s about recovering light to home, stability for business, and confidence in Nigeria’s capacity to provide power in the future.
