Minister of Power, Adebayo Adelabu,has said the sector is facing an existential threat from a N4 trillion debt owed to electricity generation companies (GENCOs), a burden accumulated since 2015 that continues to undermine operational stability and investor confidence.
Adelabu, who issued the warning at a meeting between the President and the Association of Power Generation Companies (APGC) at the Presidential Villa, said without urgent liquidity support, the sector faced the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
Adelabu appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasising that the Tinubu administration’s reforms had already laid the groundwork for a self-sufficient power market.
Adelabu emphasised the need to address gas supply shortfalls, particularly in the Afam axis, where unpaid gas suppliers had constrained generation.
He described liquidity as the oxygen of the sector and proposed immediate solutions, such as unlocking 800 million cubic feet of gas through NLNG, to stabilise generation while long-term reforms take root.
He endorsed the President’s appeal for GENCOs and financial institutions to exercise patience as the government completes its verification process. He acknowledged the frustrations of investors, but stressed the need to ensure that every liability claimed was valid and verifiable.
According to Adelabu, electricity remains the cornerstone of Nigeria’s industrial and economic ambitions, urging collective perseverance to sustain the sector’s revival. He expressed confidence that with the President’s continued support, the sector would overcome its legacy challenges and deliver stable, affordable power to every Nigerian.
Adelabu highlighted the transformative strides made in the power sector since May 2023, crediting the President’s visionary leadership for restoring investor confidence and driving tangible improvements across the electricity value chain.
The meeting was attended by the Chief of Staff to the President, Femi Gbajabiamila; the Coordinating Minister of the Economy and Finance, Wale Edun; the Minister of Information, Mohammed Idris; the Special Adviser on Energy, Olu Verheijen; GENCO chairmen, including Col. Sani Bello (rtd); and industry leaders, Tony Elumelu and Kola Adesina.