The Nigerian presidency has reiterated its commitment to settle the N2 trillion legacy debt owed to electricity generation companies (GenCos) by the end of the third quarter of 2025.
Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, made this announcement on Monday during the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission.
Onagoruwa emphasized the urgency of addressing the debt, which has placed significant strain on GenCos, hindered electricity supply across the country, and poses a risk of shutting down the power sector.
She noted that President Bola Ahmed Tinubu’s administration is considering alternative debt instruments in light of current fiscal challenges
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“We understand the challenges facing Generation Companies (GenCos),” she stated. “We are looking into alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office support this initiative. Internal approvals are currently in progress,” she added.
The N4 trillion gas debt has remained a persistent issue in Nigeria’s power sector, despite assurances of its resolution. In April, DAILY POST reported that GenCos threatened to shut down the power sector due to the unpaid N4 trillion owed to market operators.
Earlier, Minister of Power Adebayo Adelabu expressed a commitment to settle 50 percent of the N4 trillion debt by the end of the year. Meanwhile, stakeholders in the power sector have cautioned that the federal government must take decisive action to prevent a potential collapse of the country’s power infrastructure.
Despite the privatization of the Nigerian power sector more than a decade ago, it continues to struggle with inconsistent power supply, vandalism, inadequate infrastructure, insufficient investment, a significant electricity access gap, grid failures, and various other challenges.
