President Bola Tinubu has assured electricity generation companies (GENCOs) that his administration is fully committed to resolving the long-standing liquidity challenges plaguing Nigeria’s power sector. In a high-level meeting at the Presidential Villa, Abuja, Tinubu emphasized a methodical approach centered on thorough verification of the sector’s ₦4 trillion debt backlog, signaling a shift towards transparency and accountability.
Addressing concerns over the sector’s financial sustainability, Tinubu acknowledged the legacy issues inherited from previous administrations but stressed that any recognition of past liabilities must be grounded in credible audits. “Leadership means accepting responsibility, but it must be based on verifiable facts,” he stated. Rather than applying short-term fixes, the government is focused on establishing a solid foundation for future industrial growth and economic prosperity.
To this end, the President revealed that an anticipated ₦4 trillion bond issuance to clear verified debts has received his preliminary approval, subject to final confirmation after audits are completed. Tinubu also called on financial institutions to exercise patience and avoid foreclosures, promoting a spirit of collaboration over confrontation in addressing the crisis.
“Power remains the cornerstone of human dignity and economic development,” he said, urging all stakeholders to unite as partners rather than adversaries in rebuilding Nigeria’s energy future.
The meeting saw active participation from key sector players including the Association of Power Generation Companies (APGC), the Minister of Power Chief Adebayo Adelabu, and prominent business leaders like Tony Elumelu, who highlighted the urgent need to prevent an impending liquidity collapse that threatens to shutter generation plants despite operational efficiency.
Minister Adelabu praised the administration’s reform strides, noting significant achievements such as a 70% increase in revenue collection, attraction of over $2 billion in private investments, and zero national grid collapses in 2025—milestones reflecting restored investor confidence and improved sector stability.
Yet, liquidity challenges persist, compounded by ongoing gas supply constraints. Industry leaders stressed the necessity of unlocking resources like the 800 million cubic feet of gas from NLNG to sustain generation capacity.
Tinubu’s Special Adviser on Energy, Mrs. Olu Verheijen, detailed the rigorous audit process underway, with ₦1.8 trillion of claims validated so far, ensuring that only verified debts will be serviced through the government’s bond program.
The meeting underscored a collaborative government approach involving the President’s Chief of Staff, Coordinating Minister of the Economy, Finance Minister, and heads of regulatory agencies — all aligned in steering Nigeria’s power sector towards financial health and sustainable growth.
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