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The Tinubu Bola President has appealed to the Power Plant (Gencos) to provide additional time the federal government to verify and audit the old obligations owed to them, while giving anticipatory approval for the 4 trillion bond program to overcome the liquidity crisis in the Nigerian electricity sector.
The President submitted an application during a high -level meeting with the Chairperson of Gencos, led by a retired Colonel Sani Bello, which was held at the State Building, Abuja, on Friday.
The details of the meeting were revealed in a statement issued by a special advisor to the President about information and strategies, Mr. Bayo onanuga.
Since the privatization of the electricity sector in 2013, the Nigerian electric market has struggled with structural inefficiency, including lack of tariffs, gas supply constraints, unpaid subsidies, and poor transmission infrastructure. These problems have resulted in a persistent liquidity gap, forcing the Nigerian mass electricity trading company (NBET) to only solve a small portion of the Gencos Monthly Invoice, often with high-term high-term loans from commercial banks.
President Tinubu, while acknowledging the debt obligation inherited, insisted that any settlement must be based on a credible and transparent validation process.
“I accept the assets and obligations of my predecessors, and there are no questions about it,” said the President. “But the acceptance must be with credible reasons. I need to wear a verification, authenticity, and fact that this legacy is not only deodorant but a supporting structure for critical economic and industrial promotion.”
The president urged the Gencos and their financial partners to carry out patience, when the auditors and legal advisors appointed by the government continued their thorough test.
“We are here. So, the market is with your other colleagues. Give us time to verify and validate numbers,” said Tinubu, reaffirizing the commitment of his government to reform this sector.
He also warned the commercial banks to start the confiscation process against Gencos, urged them to show the restraint as the government to work to solve the underlying problems.
“To our friends in the banking sector, I ask that we avoid confiscation. Sharp your pencil, but it remains useful. Let’s survive together,” added the President.
Emphasizing the importance of electricity for national development, Tinubu described it as “the most important discovery of humanity in the last 1,000 years,” added that energy access is an integral part of economic growth and human dignity.
Special advisory for the President of Energy, Ms. Olu Verheijen, giving further insight into the position of the government, noting that in April 2025, the Federal government brought a verified exposure of 4 trillion in debt owed to the Gencos.
“From 2015 to the end of 2023, Gencos filed a claim of around ₦ 4 trillion,” Verheijen said. “We have been sitting with 27 Genco and reviewed the Power Purchase Agreement and a gas sales contract. NBET has so far validated ₦ 1.8 trillion of this claim.”
He noted that the figure remained temporary and subject to the revision down while waiting for the final audit results.
“Although there is an anticipatory agreement from the 4 trillion bond program, this can be negotiated and final settlement of the agreement. Only the amount must be included by the Federal Government which will be legally included in the issuance of the Debt Management Office (DMO),” he clarified.
Minister of Power, Mr. Adebayo Adelabu, praised President Tinubu for prioritizing the electricity sector, stating that investor confidence and performance indicators have increased significantly since 2023.
“Your Honor, your presence at this meeting is a clear evidence of your unwavering commitment to the sustainability, stability, and long -term development of the Nigerian electricity sector,” Adelabu said.
He quoted large reforms, including the signing of the Electric Law, 2023, which decentralized the electric market and opened the way for the state-level regulation and competition. The Minister also highlighted Nigeria’s first integrated national electricity policy in 24 years and an attraction of more than $ 2 billion in new private capital.
According to Adelabu, the sector revenue grew 70 percent in one year, from ₦ 1 trillion in 2023 to ₦ 1.7 trillion in 2024, reducing the government subsidy obligations by more than ₦ 700 billion. The installed generation capacity increased from 13,000 MW to 14,000 MW, with a peak generation record of 5,801 MW and the highest daily energy delivery of 120,370 MWH recorded on March 4, 2025.
He also reported progress in bridging the national measurement gap through ₦ 700 billion the initiative of the Presidential Measurement and the Recovery Program of the Distribution Sector supported by the World Bank (Disrep), which has so far mobilized 300,000 smart meters from the 3.45 million obtained.
Apart from this advantage, Adelabu warned the increasing liquidity crisis that could disrupt the ongoing reform, calling for urgent financial intervention.
“TN. The President, given the major implications of this debt, including the risk of closing the national generation assets, I humbly seek your direct support to finance this obligation, even if partly, during the specified period,” the Minister urged.
The high -level meeting was attended by the Chief of Staff of the President, Mr. Femi Gbajabiamila; Minister of Coordination of Economics and Finance, Bpk. Wale Edun; Minister of Information, Mr. Mohammed Idris; As well as the main government officials, regulators and other stakeholders.
