President Bola Tinubu’s planned meeting with the leadership of Nigeria’s power-generating companies comes as a response to the N4tn debt threatening the stability of the electricity supply chain.

In a statement by the power ministry on Sunday, the meeting follows discussions between the Minister of Power, Adebayo Adelabu, and the Genco chairmen, highlighting concerns about the risk of a national grid collapse due to liquidity issues in the sector.

The government has pledged swift action to address the N4tn debt owed to Gencos.

This comes after the Gencos issued a warning to the Federal Government about the growing debt, which now exceeds N4tn.

The companies said they were currently owed N2tn for power supplied in 2024 and N1.9tn in legacy debts.

The statement by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, stated that the Federal Government had resolved to settle a substantial portion of the debt immediately, while the remainder would be cleared through financial instruments such as promissory notes within 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.

He stressed the Federal Government’s resolve to avoid a collapse of the power sector, calling the situation a national emergency.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.

When questioned on a likely date for the meeting, the media aide said, “I can’t say yet,” explaining that discussions were still ongoing among relevant parties.

The Gencos, led by Col. Sani Bello (retd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, warned of a looming collapse in the sector due to escalating debt and ongoing liquidity challenges.

Bello highlighted that the growing debt burden had crippled operations, restricting access to necessary funding for maintenance and infrastructure upgrades.

“Without urgent intervention, the entire power ecosystem could collapse,” he said.

Echoing his concerns, the Chairman of Egbin Power and First Independent Power Limited, Kola Adesina, said, “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Adelabu acknowledged that systemic failures and policy inconsistencies had contributed to the sector’s challenges. He emphasized that the government was not only focused on debt repayment but also committed to implementing reforms to ease operational difficulties. Adelabu advocated for the full liberalization of the electricity market and urged Nigerians to accept cost-reflective tariffs, stressing that subsidies were no longer sustainable in the long term.

“Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidy for economically disadvantaged Nigerians,” he stated.