In a move that could mark a turning point for Nigeria’s ailing power sector, President Bola Tinubu has given anticipatory approval for a ₦4 trillion bond programme to offset longstanding debts owed to electricity generation companies (GENCOs). But the announcement, made during a high-level meeting with power sector stakeholders at the Presidential Villa, was as much a call for patience as it was a promise of relief.
The President’s message was clear: his administration is willing to shoulder the debts left behind by previous governments—but not without proper scrutiny.
“I accept the assets and liabilities of my predecessors,” Tinubu told the gathering, which included industry titans like Tony Elumelu and Kola Adesina. “But that acceptance must be based on credible grounds. We need time for verification and validation.”
The meeting, tense yet hopeful, reflected the depth of the crisis engulfing Nigeria’s electricity market. For years, GENCOs have battled with payment shortfalls, gas supply constraints, and unpaid debts—issues that have not only crippled the sector but also discouraged fresh investments.
A Sector on the Brink
According to the report, the Special Adviser to the President on Energy, Mrs. Olu Verheijen, painted a sobering picture. She revealed that as of April 2025, the Federal Government is carrying a ₦4 trillion verified debt burden to GENCOs—accumulated from unfunded tariff shortfalls and market imbalances dating back to 2015. While ₦1.8 trillion of the claims has already been validated by the Nigerian Bulk Electricity Trading Company (NBET), the final figure remains under audit.
“This crisis is over a decade in the making,” Verheijen said. “But now we are at a turning point. The President’s approval of this bond programme signals that the government is ready to act.”
But beyond the numbers, the emotional weight of the moment came to light when Tony Elumelu, Chairman of Transcorp Group, addressed the President directly.
“Mr. President, we’ve come to you as a last hope,” Elumelu said, his tone earnest. “We’re not here because we’ve failed. We’re here because the system owes us trillions. Banks are threatening foreclosure. It’s not sustainable.”
Elumelu, who has invested heavily in Nigeria’s power infrastructure, lauded Tinubu’s leadership in stabilising oil production and rebuilding investor confidence. But he issued a warning: without electricity, Nigeria’s economic transformation would stall.
“We need power not to complete your reforms, but to power them,” he said.
The Weight of Reform
Since taking office, President Tinubu’s administration has taken steps to reform the power sector, starting with the signing of the Electricity Act 2023, which liberalises the market and devolves regulatory authority to states. The Minister of Power, Chief Adebayo Adelabu, outlined additional achievements, including:
- A 70% increase in annual revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
- Over $2 billion in new private investment in the power sector.
- A new peak generation of 5,801MW and record daily energy delivery of 120,370 MWh, achieved in March 2025.
- No grid collapse recorded in 2025—an unprecedented feat.
- A ₦700 billion Presidential Metering Initiative, which, alongside the World Bank-supported DISREP programme, has already delivered 300,000 smart meters.
Despite these gains, Adelabu acknowledged the fragility of the progress. “Without immediate liquidity support, these achievements risk being reversed,” he warned.
Gas Supply, the Hidden Hurdle
Aseasoned player in the energy sector, added another layer to the conversation—the gas supply crisis. He disclosed that several plants, especially in the Afam axis, are underperforming due to non-payment to gas suppliers.
“We propose unlocking 800 million cubic feet of gas through NLNG to revive these power plants,” added. “Liquidity is the oxygen of our business.”
The report further disclosed that the meeting was attended by other key figures in the Tinubu administration, including Chief of Staff Femi Gbajabiamila, Coordinating Minister of the Economy Wale Edun, and Minister of Information Mohammed Idris, underscoring the strategic importance the government places on stabilising the power sector.
A Delicate Balance
President Tinubu concluded by calling for a collaborative approach between GENCOs, banks, and regulators. He acknowledged the complexity of the issues and asked financial institutions to exercise patience.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy,” he said. “Let’s persevere together.”
A Light at the End?
While the ₦4 trillion bond approval is a bold first step, the road ahead remains long and uncertain. Much depends on the speed and credibility of the verification process, the political will to release funds promptly, and the ability of the sector to ensure transparency and sustainability moving forward.
For GENCOs, the message is cautiously optimistic: relief is coming, but only after due diligence. For Nigerians, the hope remains that this intervention will translate into more reliable power, economic growth, and “eventually” a nation no longer held hostage by darkness.
The next few months will be critical. Will Tinubu’s intervention be the turning point the sector has long waited for? Or will it be another promise buried in bureaucracy? The clock is ticking, and the lights are flickering.
@2025 The Ameh News: All Rights Reserved
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