- The Presidency will initiate internal approvals to clear the ₦2tn owed to GenCos by next quarter, stabilising the electricity supply.
- Officials explore alternative debt instruments due to fiscal constraints, with coordination from economic and debt management agencies.
The Nigerian Presidency has initiated internal approval processes to resolve the ₦2 trillion legacy debt owed to electricity generation companies (GenCos), aiming to stabilise the country’s struggling power sector before the end of the next quarter.
Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, announced this development on Monday during the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC).
According to Onagoruwa, the Presidency recognises the urgency of tackling the growing debt burden, which has significantly strained GenCos and disrupted electricity supply nationwide. She noted that the Federal Government is exploring alternative debt instruments due to tight fiscal conditions.
“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.”
While she did not provide a firm timeline, Onagoruwa expressed hope that the government would issue a clear update within three months, before the next NESI meeting.
The urgency comes amid warnings from GenCos, who previously alerted the government that accumulated debts now exceed ₦4 trillion. Earlier reports by The PUNCH revealed that the Federal Government owes power producers approximately ₦200 billion monthly, with this year’s unpaid obligations adding another ₦800 billion.
The Senate Committee on Power also raised alarms over the deepening liquidity crisis in the power sector, stressing that tariff shortfalls continue to widen the government’s indebtedness.
Monday’s stakeholders meeting gathered regulators, operators, and key industry players to address sector bottlenecks and accelerate reforms. Discussions covered several critical topics, including the widening metering gap, the Presidential Metering Initiative, the proposed Meter Asset Fund, and establishing the Nigerian Independent System Operator (NISO).
Participants also explored the transition to a multi-tier electricity market and examined the roles of newly established State Electricity Regulatory Commissions.
During the meeting, John Akinnawo, Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, warned that decentralisation driven by the Electricity Act 2023 could fragment the market. He urged NISO to lead efforts in policy coordination and operational alignment.
In response, NISO Managing Director Abdu Mohammed Bello presented a detailed briefing on the agency’s vision, mission, and core functions. He emphasised NISO’s role in enhancing transparency, system coordination, and operational stability in Nigeria’s evolving electricity landscape.
Stakeholders welcomed the Presidency’s intervention on GenCo debts and expressed optimism that ongoing reforms would reshape Nigeria’s electricity supply industry for long-term sustainability.