Power Sector Debt Crisis deepens as Tinubu promises GENCOs action on ₦4 trillion arrears, unveiling bond plans and validation efforts to avoid asset shutdowns

Power Sector Debt Crisis took center stage on Friday as President Bola Tinubu met with the Association of Power Generation Companies (GENCOs) at the Presidential Villa.

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Tinubu reaffirmed his administration’s commitment to resolving the ₦4 trillion debt crisis threatening Nigeria’s power sector, stating, “I accept the assets and liabilities of my predecessors, but only with verifiability and authenticity.”

The Power Sector Debt Crisis stems from over a decade of tariff shortfalls and unfunded obligations. To address this, a ₦4 trillion bond programme has received anticipatory approval, pending final validation.

Special Adviser on Energy, Olu Verheijen, confirmed that ₦1.8 trillion has already been validated, with the rest under review. She emphasized that only legitimate debts will be covered under the bond issuance.

Minister of Power, Adebayo Adelabu, praised Tinubu’s reforms—including the Electricity Act 2023 and a ₦700 billion metering initiative—highlighting increased generation capacity and zero grid collapses in 2025.

Business mogul Tony Elumelu urged urgent resolution: “The banks are circling. Foreclosure threats are real. This debt must be defrayed.” He lauded Tinubu’s turnaround in oil production, calling electricity the key to unlocking Nigeria’s economic potential.

President Tinubu concluded with a powerful appeal: “Let’s persevere together. Electricity is the most important discovery of humanity in the last 1,000 years.”

Also read: Tinubu Fiscal Reforms Strategy Earns Historic Praise Despite Tough Measures

The Power Sector Debt Crisis may be daunting, but with strategic reforms and political will, there is light at the end of the tunnel.