The Presidency says it is working on clearing the ₦2 trillion debt owed to electricity generation companies, a move seen as crucial to saving Nigeria’s struggling power sector.
Speaking at the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, held in Abuja on Monday, June 2, a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, revealed that the federal government is already processing internal approvals to address the massive debt burden.
“We are empathetic to what GenCos are facing,” Onagoruwa said. “We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort. Internal approvals are currently underway.”
She didn’t give a specific deadline but expressed hope that by the next NESI meeting, a clearer picture would emerge.
“I hope by the next NESI meeting, I will be able to share a clear update,” she said.
Her comments follow mounting frustration from power generators, who recently warned that debts owed by the federal government have ballooned to over ₦4 trillion.
The Senate Committee on Power also raised concerns, revealing that the government owes about ₦200 billion every month and has yet to make any payments to GenCos this year, pushing the 2025 debt alone to an estimated ₦800 billion.
The unpaid bills are weighing heavily on the entire electricity value chain and threaten to worsen the already erratic power supply Nigerians face daily.
READ ALSO: Tinubu to Meet GenCos Over Looming Power Crisis, ₦4tn Debt
At the meeting, hosted by the Nigerian Electricity Regulatory Commission (NERC), stakeholders discussed a range of challenges in the sector, from the widespread metering gap and the Presidential Metering Initiative to the rollout of the proposed Meter Asset Fund and the role of the Nigerian Independent System Operator (NISO).
The transition to a decentralised electricity market, made possible by the Electricity Act 2023, also featured heavily. But there were cautionary notes.
John Akinnawo, Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, warned that decentralisation could fragment the market if not properly managed. He urged NISO to play a leading role in keeping operations and policies aligned.
NISO’s Managing Director, Abdu Mohammed Bello, outlined the agency’s priorities, which include boosting system coordination, enhancing transparency, and strengthening stability across the national grid.
While no immediate fix was announced, stakeholders said the Presidency’s renewed attention to the GenCo debt gave them hope.
For a sector long plagued by underinvestment, liquidity shortfalls, and policy drift, the promise of decisive action couldn’t come at a more critical time.
Whether the government delivers on that promise in the next quarter remains to be seen, but the industry, and the millions it serves, will be watching closely.