President Bola Tinubu is preparing to hold urgent talks with Nigeria’s power generation companies in response to the staggering N4 trillion debt that is threatening the nation’s power supply system.
The meeting, which is expected to take place soon, comes amid serious concerns about the stability of the country’s electricity grid.
This planned engagement follows a key meeting held last Tuesday in Abuja between the Minister of Power, Adebayo Adelabu, and the top executives of the power-generating companies, also known as GenCos. The discussion was centered on the growing liquidity problems within the power sector and the need for immediate action to avoid a potential breakdown of the national grid.
In a statement released on Sunday, the Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Bolaji Tunji, noted that the Federal Government had decided to make a major payment to the GenCos. This payment, according to him, will be split into two parts: a large portion will be settled in cash, while the rest will be addressed through financial tools such as promissory notes over the next six months.
“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest,” Adelabu said during the meeting.
He also noted that the government is taking the matter very seriously, as a continued delay in settling the debts could lead to a collapse of the entire electricity network. He described the situation as a national emergency that cannot be ignored.
