The Presidency has commenced internal approval processes to settle the N2 trillion legacy debt owed to electricity generation companies (GenCos) before the end of the next quarter, as part of renewed efforts to stabilise Nigeria’s troubled power sector.
This was revealed on Monday by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, during the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC).
Onagoruwa stressed that the debt overhang has placed a significant burden on GenCos and hampered electricity supply nationwide. She said the Presidency is exploring alternative debt instruments due to 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.”
Though no specific timeline was given, Onagoruwa expressed hope that progress would be reported at the next quarterly NESI meeting. “I hope by the next NESI meeting, I will be able to share a clear update,” she said.
Earlier, NEWS REVIEW reported that GenCos had issued a warning to the Federal Government over unpaid debts now exceeding N4 trillion. The Senate Committee on Power also raised alarm over the growing liquidity crisis in the sector, revealing that tariff shortfalls have left the government owing an estimated N200 billion monthly. So far this year, the government has reportedly not made payments, pushing the debt to about N800 billion.
The stakeholders meeting brought together key players across the electricity value chain to address persistent bottlenecks and review sector reforms. Major topics discussed included the Presidential Metering Initiative, the proposed Meter Asset Fund, the widening metering gap, and the establishment of the Nigerian Independent System Operator (NISO).
John Akinnawo, Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, warned against the risk of market fragmentation following decentralisation moves under the Electricity Act 2023. He urged NISO to lead policy harmonisation efforts.
In his presentation, NISO’s Managing Director, Abdu Mohammed Bello, outlined the agency’s core goals enhancing transparency, system coordination, and market stability.
Stakeholders welcomed the Presidency’s debt resolution move and expressed optimism that the combined reforms would reposition the power sector for long-term growth and sustainability.
With internal processes now in motion and a clear update expected within months, attention remains focused on the Presidency’s next steps in ending the GenCo debt crisis.
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