Presidency moves to clear up N2tn power debt
The Presidency has started internal approval procedures in an attempt to stabilise Nigeria’s power sector by settling the N2 trillion legacy debt owing to energy producing companies by the end of the upcoming quarter.
At the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, which was organised by the Nigerian Electricity Regulatory Commission, Eriye Onagoruwa, the Special Adviser to the President on Energy, revealed this information on Monday.
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The Presidency acknowledged the need to resolve the debt overhang, which has put pressure on GenCos and hindered the nation’s ability to produce power, Onagoruwa added. Because of the Federal Government’s existing financial limits, she disclosed, other debt instruments are being investigated.
Although she could not provide a specific timeframe, Onagoruwa stated that she hoped to have a clear update before the next quarterly NESI Stakeholders Meeting. She also suggested that progress could be reported in the upcoming three months.
“We are empathetic to what GenCos are facing,” she 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.”
“I hope by the next NESI meeting, I will be able to share a clear update,” she said.
Previous reports revealed that Gencos has warned the Federal Government about the ongoing buildup of debt, which presently stands at over N4 trillion.
The Senate Committee on Power recently expressed alarm about the power industry’s financial issue, pointing out that the government owes approximately N200 billion to electricity-generating businesses each month as a result of tariff deficits.
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The committee revealed that the government has not paid the electricity producers since this year, increasing the debt to around N800 billion.
Abdu Mohammed Bello, the managing director of NISO, gave a thorough briefing on the organization’s goals, objectives, and essential operations. He emphasised how it contributes to increased operational stability, system coordination, and transparency in the changing electrical market.
The Presidency’s intervention on the GenCo debt was welcomed by the meeting’s stakeholders, who also expressed hope that the combined reforms would help reposition Nigeria’s electricity supply sector for long-term sustainability.
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