President Bola Tinubu has called for more time to verify and audit longstanding debt claims in Nigeria’s electricity sector, even as his administration approved a ₦4 trillion bond programme aimed at resolving the industry’s deepening liquidity crisis.
During a meeting with power generation company (GENCO) executives at the State House on Friday, Tinubu acknowledged the mounting arrears but insisted that any payments would be made only after proper verification. “I accept the assets and liabilities of my predecessors… but that acceptance must be on credible grounds,” he said.
He emphasized transparency, noting, “I need to wear the audit cap of verifiability, authenticity… this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.” The president urged GENCOs and banks to be patient as auditors and legal teams complete a detailed review.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed that the meeting was led by Col. Sani Bello (retd.) on behalf of the GENCOs, who have repeatedly warned of possible foreclosures by banks due to unpaid debts and high-interest loans.
The ₦4tn bond programme, though approved in principle, will only be executed after a detailed reconciliation of the debts. According to Special Adviser on Energy, Olu Verheijen, verified liabilities currently stand at ₦1.8tn, with an additional ₦200bn in unpaid subsidies bringing the government’s exposure to ₦4tn as of April 2025.
“We’ve reviewed contracts, power purchase agreements and gas supply obligations. The current ₦4tn claim is subject to downward adjustment pending final audit. Only validated claims will be settled through the Debt Management Office,” Verheijen stated.
GENCOs say persistent underpayment from the Nigerian Bulk Electricity Trading Company has left them reliant on expensive short-term loans, undermining generation capacity and new investments. They warned that unless resolved, the situation could trigger a chain reaction of defaults across the value chain.
President Tinubu appealed to commercial lenders to avoid drastic actions such as asset seizures. “To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” he said.
Minister of Power, Adebayo Adelabu, commended Tinubu for prioritizing power sector reforms, highlighting achievements under the administration including passage of the Electricity Act 2023, and the launch of Nigeria’s first Integrated Electricity Policy in two decades.
According to Adelabu, the power sector’s revenue jumped from ₦1tn in 2023 to ₦1.7tn in 2024, helping reduce subsidy obligations by ₦700bn. He also reported an increase in installed generation capacity to 14,000 MW, a peak generation of 5,801 MW, and the elimination of grid collapses in 2025.
The minister added that the Presidential Metering Initiative and the World Bank’s DISREP project are closing Nigeria’s metering gap, with over 300,000 smart meters already delivered out of 3.45 million procured.
Despite these milestones, Adelabu warned that unresolved debts threaten ongoing reforms. “We seek your support to partially defray these obligations over a defined period. Without this, we risk a sector-wide shutdown,” he said.
Business moguls Tony Elumelu and Kola Adesina echoed similar concerns, calling the president “a last hope” for an industry suffocating under debt. “We don’t need power to complete your transformation; we need power to enable it,” Elumelu stressed.
Adesina pointed to gas supply challenges as a major barrier, proposing a solution through Nigerian LNG. “Liquidity is the oxygen of our business. Without it, generation capacity will collapse,” he warned.
Tinubu reiterated his belief in a market-driven power industry and pledged that legacy issues neglected for years were now being addressed. “Electricity is the most important discovery of the last 1,000 years. It’s fundamental to growth and dignity,” he said.
The high-level meeting was attended by Chief of Staff Femi Gbajabiamila, Finance Minister Wale Edun, Information Minister Mohammed Idris, and other senior government and industry players, signaling the administration’s political will to rescue the power sector from its decade-long crisis.
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