Presidency Set To Settle N2tn Power Debt

In an attempt to stabilise Nigeria’s power sector, the Presidency has started internal approval procedures to settle the N2 trillion legacy debt owed to electricity generation companies by the end of the upcoming quarter.

A representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, disclosed this on Monday at the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission.

Onagoruwa said the Presidency recognises the urgency of addressing the debt overhang, which has strained GenCos and impeded electricity supply nationwide. She revealed that alternative debt instruments are being explored due to the Federal Government’s current fiscal constraints.

“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.”

While she did not give a definitive timeline, Onagoruwa expressed hope that a clear update would be available before the next quarterly NESI Stakeholders Meeting, suggesting progress could be announced within the next three months.

“I hope by the next NESI meeting, I will be able to share a clear update,” she said.

The PUNCH earlier reported that Gencos had issued a warning to the Federal Government over the continued accumulation of debts now totalling over ₦4tn.

The Senate Committee on Power recently raised concerns over the liquidity crisis bedevilling the power sector, lamenting that the tariff shortfalls in the industry indicated that the government owes about N200bn to electricity-generating companies every month.

The committee disclosed that since this year, the government has not paid the power producers, and that this has raised the debt to about N800bn.

The meeting brought together regulators, operators, and other key actors in the electricity value chain to address persistent bottlenecks and chart a course for ongoing sector reforms.