•Approves Bond Programme As Verification Continues
President Bola Tinubu has assured electricity generation companies (GENCOs) of his administration’s readiness to resolve the sector’s decade-long liquidity crisis, as the Federal Government begins verification and validation of debt claims amounting to over ₦4 trillion.
The President gave the assurance on Friday at the Presidential Villa, Abuja, during a high-level meeting with the Association of Power Generation Companies (APGC) led by retired Colonel Sani Bello.
The engagement comes as concerns mount over the sustainability of ongoing reforms amid mounting debt, dwindling liquidity, and increasing pressure from financial institutions.
President Tinubu appealed to the GENCOs and their bankers for patience and understanding, affirming that credible audits were underway to reconcile legacy claims dating back to 2015.
“I accept the assets and liabilities of my predecessors; that is leadership. But that acceptance must be based on verifiability. I need to wear the audit cap of authenticity.
“We’re not just spraying deodorant on past issues; we are building the foundation for a future of industrial growth and prosperity,” he said. The President disclosed that a ₦4 trillion bond programme has received his anticipatory approval, subject to final verification. He underscored his administration’s commitment to creating a sustainable investment climate and avoiding asset seizures that could jeopardise national development.
“To our friends in the banking sector, let’s avoid foreclosures. Sharpen your pencils, but keep your erasers handy,” Tinubu said. “Let’s persevere together. Power is the most important discovery of humanity in the past 1,000 years. It is the key to unlocking human dignity and economic prosperity.” President Tinubu maintained that his government would not be distracted from laying a solid foundation for the sector.
“We are not afraid of hard decisions. We will resolve this problem, not bury it. Let’s move together, not as debtors and creditors, but as partners building Nigeria’s future,” Tinubu said.
The President’s Special Adviser on Energy, Mrs. Olu Verheijen, revealed that a total of ₦4 trillion in GENCO claims had been presented to government auditors, of which ₦1.8 trillion had been validated so far.
“The claims date back to 2015, covering power purchase agreements, gas supply contracts, and unfunded tariff shortfalls.
“While anticipatory approval has been secured, only verified and mutually agreed sums will form part of the Debt Management Office’s bond issuance,” Verheijen said.
She explained that 27 GENCOs had engaged with the government during a rigorous review of their agreements, with a view to aligning claims with contractual obligations and service delivery records.
Speaking at the meeting, Minister of Power, Chief Adebayo Adelabu, lauded the Tinubu administration’s sweeping reforms, which he said have reversed the fortunes of the electricity sector. Adelabu said: “In just under two years, we’ve recorded milestones that have rebuilt investor confidence.
“The Electricity Act 2023, the first law signed by the President, has liberalised the sector. We’ve attracted over $2 billion in private capital, while revenue collection has jumped from ₦1 trillion in 2023 to ₦1.7 trillion in 2024, a 70 per cent increase.” He also revealed that government subsidies had dropped by over ₦700 billion and that installed generation capacity had risen to 14,000MW, with peak generation reaching 5,801MW.
“Notably, 2025 has seen zero national grid collapses so far, a testament to the success of the Presidential Power Initiative,” Adelabu added. To close Nigeria’s long-standing metering gap, he said the ₦700 billion Presidential Metering Initiative and the World Bank-supported DISREP programme have begun delivering results, with over 300,000 smart meters already distributed out of the 3.45 million procured.
Despite the progress, industry leaders warned of an imminent liquidity crisis if urgent interventions were not made.
“We’ve come to you, Mr. President, as a last hope,” said business mogul Tony Elumelu.
“The system owes us trillions. If nothing is done, generation assets may shut down, not due to inefficiency, but because the government owes us.” Elumelu commended the administration’s performance in restoring banking stability and halting crude oil theft, but stressed that electricity must now be prioritised as the foundation for sustainable development.
“Power is not a finishing touch to your transformation agenda, it is the enabler,” he said. Kola Adesina, another leading figure in the power sector, echoed the call for liquidity and highlighted persistent gas supply constraints.
“Liquidity is the oxygen of our business. The Afam plants are starved of gas because we haven’t paid suppliers,” Adesina said, urging the government to unlock 800 million cubic feet of gas via NLNG to boost supply.
The meeting was also attended by the Chief of Staff to the President, Femi Gbajabiamila; the Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun; Minister of Information and National Orientation, Alhaji Mohammed Idris; and top officials from the Ministry of Power, NBET, the DMO, and key regulatory bodies.
