Tinubu Government Sets Up Committee to Clear ₦4 Trillion GenCos Debt — The Bureau News Nigeria News Today
By Safiyat Muhammed | The Bureau News
The Nigerian government, under President Bola Ahmed Tinubu, has constituted a high-level committee to address the longstanding debt crisis crippling power generation companies (GenCos) across the country.
The Bureau News reports that the move, which follows years of strained relations between the federal government and power producers over unpaid invoices, seeks to clear existing arrears and introduce a sustainable payment structure for the future.
Government Moves to End Power Sector Liquidity Crisis
The development was announced by the Permanent Secretary, Ministry of Power, Mr. Mahmuda Mamman, during the 10th-anniversary celebration of the Association of Power Generation Companies of Nigeria (APGC) held on Monday in Abuja.
Mamman, represented by Mrs. Evangeline Babalola, a director in the ministry, explained that the committee’s mandate extends beyond debt settlement to include mechanisms that would prevent a recurrence of the liquidity challenges undermining the Nigerian Electricity Supply Industry (NESI).
“In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr. President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos,” Mamman said.
Government Commends GenCos’ Resilience
The Permanent Secretary applauded the GenCos for their patriotism and endurance despite enduring immense financial strain that could have crippled other industries.
“You have not abandoned your posts in spite of severe liquidity challenges that would have forced closure in any other industry. This is not just business; this is patriotism in action,” Mamman noted.
He assured industry stakeholders that President Tinubu was fully aware of the liquidity challenges confronting the power sector and remained committed to implementing lasting solutions.
“As we work to resolve the debt situation, I encourage you to maintain the same spirit of resilience and commitment that has characterised your operations over the past decade,” he said.
APGC Marks a Decade of Powering Nigeria’s Growth
The 10th-anniversary celebration of the Association of Power Generation Companies — themed “A Decade of Powering Progress, Driving Nigeria’s Energy Transformation” — provided a platform for stakeholders to reflect on ten years of Nigeria’s post-privatisation power journey.
Speakers acknowledged both the achievements and persistent financial challenges confronting the sector, including liquidity constraints, policy inconsistencies, and infrastructural limitations that continue to test Nigeria’s power reform agenda.
₦4 Trillion Debt Threatens National Power Stability
In April, the GenCos raised alarm over an imminent shutdown of power plants nationwide, citing a staggering ₦4 trillion debt owed by the government.
According to Col. Sani Bello (rtd), Chairman of the Board of Trustees of the APGC, the companies are owed approximately ₦2 trillion for power supplied in 2024 and an additional ₦1.9 trillion in legacy debts. He disclosed that GenCos receive less than 30% of their monthly invoices for power delivered to the national grid — a shortfall that threatens operational continuity.
“Despite significant investments and efforts to ramp up capacity, GenCos face systemic constraints, unfriendly policies, and mounting debts without a clear repayment plan. The absence of firm contracts and a securitised market has further complicated financial planning,” the APGC statement read.
The companies warned that failure to resolve the crisis could lead to a total collapse of the electricity value chain, plunging Nigeria into widespread blackouts if urgent interventions are not implemented.