The Minister of Power, Mr Adebayo Adelabu
on Sunday said that a meeting has been scheduled between President Bola Tinubu
and the leadership of the Power Generation Companies(GenCos) over a N4-trillion
debt.
Mr Bolaji Tunji, Special Adviser, Strategic
Communications and Media Relations to the minister of power said this in a
statement in Abuja on Sunday.
According to Adelabu, the planned meeting with
President Tinubu aims to chart a viable course for resolving the debt
Adelabu assured that the Federal Government would
immediately pay a significant portion of the debt, while the balance would be
settled using financial instruments such as promissory notes within six months.
“We recognise the urgency of this matter. The
government is committed to resolving this debt to stabilise the sector and
prevent further crisis,” Adelabu said.
Acknowledging the government’s own role in the
sector’s challenges, Adelabu pledged not only to clear the debt backlog but
also to implement structural reforms that would remove operational bottlenecks.
He emphasised the need for full liberalisation of the
power sector and called for the adoption of cost-reflective tariffs.
“Citizens must pay the appropriate price for the
energy consumed.
“The Federal Government will continue to provide
targeted subsidies for economically disadvantaged Nigerians, but we must
realise that our economy cannot sustain blanket subsidies indefinitely,” he
said.
The minister also unveiled plans to review existing
regulations to lower levies and enhance market stability.
He urged GenCos to partner with the government in
raising public awareness on efficient electricity use and tariff realities.
The GenCos were led by Col. Sani Bello(Rtd), Chairman
of Mainstream Energy Solutions, and who is also the Chairman of Association of
Power Generating Companies.
Bello warned that persistent liquidity challenges had
left GenCos unable to service loans or maintain critical infrastructure.
“Without urgent intervention, the entire power
ecosystem could collapse,” he said.
Mr Kola Adesina, Chairman of Egbin Power and First
Independent Power Limited, described the situation as a national emergency.
He said that reliable power supply was fundamental to
the survival of industries, homes, and health facilities.
Mrs Joy Ogaji, Chief Executive Officer (CEO) of
Association of Power Generation Companies, listed the systemic challenges
undermining GenCos, including chronic payment defaults, erratic gas supply, and
forex instability.
She lamented the steep depreciation of the naira—from
?157/$1 in 2013 to ?1,600/$1 in 2024. saying it had devastated GenCos’ ability
to meet maintenance obligations and repay loans.
“GenCos have borne unsustainable risks from grid
failures to unproductive taxes while remaining patriotic,” she said.
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