President holds high-level meeting with GENCO chairmen, unveils bond programme to address sector’s liquidity crisis
President Bola Tinubu has assured power generation companies (GENCOs) of his administration’s commitment to resolving longstanding debts owed by the federal government, while appealing for patience to allow time for verification and validation of the claims.
Speaking during a meeting with members of the Association of Power Generation Companies at the Presidential Villa on Friday, Tinubu said the federal government is working to settle the historic liabilities inherited from previous administrations.
“I accept the assets and liabilities of my predecessors,” the President declared. “But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.”
The GENCO delegation was led by Col. Sani Bello (rtd), while key industry stakeholders and cabinet members were also present at the meeting.
To tackle the liquidity shortfall in the power sector, the Special Adviser to the President on Energy, Olu Verheijen, revealed that President Tinubu has given anticipatory approval for a ₦4 trillion bond programme. She explained that the verified debt claims date back to 2015 and currently stand at ₦4 trillion, although only ₦1.8 trillion has been validated by the Nigerian Bulk Electricity Trading Company (NBET) so far.
“While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement. Only valid government obligations will be captured in the issuance,” Verheijen stated.
She attributed the debt accumulation to a decade of unfunded tariff and market shortfalls, warning that the figures may be revised downward pending final validation.
President Tinubu assured GENCOs and their financial partners that his administration remains committed to supporting the sector through transparent and fair processes. He urged banks to be cautious in pursuing foreclosures against power companies.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” he said.
Reiterating his support for a market-driven electricity sector, Tinubu noted that critical reforms are already underway to address legacy issues. “This is a longstanding issue that is now being dealt with. We introduced the alternative, CNG, to bring relief back to the people,” he added.
The Minister of Power, Chief Adebayo Adelabu, commended the President for prioritising reforms in the power sector, noting several achievements since 2023. These include the enactment of the Electricity Act, the launch of the first Integrated National Electricity Policy in 24 years, and the attraction of over $2 billion in private capital for expanding electricity access.
Adelabu highlighted a 70 percent increase in annual sector revenue—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—resulting in a reduction of government subsidies by over ₦700 billion.
He reported that installed generation capacity has increased to 14,000MW, with a new peak generation of 5,801MW and a record daily energy delivery of 120,370MWh, achieved on March 4, 2025. He also noted that there has been no national grid collapse this year, thanks to improvements under the Presidential Power Initiative.
Despite these gains, the Minister warned that the sector faces a critical liquidity crisis that could stall further progress.
“Mr. President, given the grave implications of this debt overhang, including the risk of a nationwide shutdown of generation assets, I humbly seek your immediate support for defraying these obligations, even if partially,” Adelabu appealed.
Private sector leaders Tony Elumelu and Kola Adesina echoed these concerns, stressing the urgent need for liquidity intervention to sustain operations and encourage investment.
Elumelu described the GENCOs as “heavily indebted to banks” and warned that foreclosure threats could collapse the power industry. “We don’t need power to complete your transformation, we need power to enable it,” he said.
Adesina added that gas supply shortages were further limiting generation output and proposed the release of 800 million cubic feet of gas from the NLNG to power critical plants.
The high-level meeting was attended by Chief of Staff to the President, Femi Gbajabiamila; Coordinating Minister of the Economy and Minister of Finance, Wale Edun; Minister of Information and National Orientation, Mohammed Idris; and other top officials and stakeholders in Nigeria’s electricity industry.