President Bola Tinubu has pledged decisive action to tackle the electricity sector’s decade-long liquidity crisis, as the Federal Government begins a comprehensive audit of over ₦4 trillion in outstanding debts owed to power generation companies (GENCOs).
The assurance came during an emergency meeting with power sector stakeholders at the Presidential Villa on Friday, where the President balanced urgent financial interventions with demands for rigorous verification processes. Facing mounting pressure from both GENCOs and financial institutions, President Tinubu struck a careful balance between acknowledging historical liabilities and insisting on accountability.
“I accept the assets and liabilities of my predecessors… but that acceptance must be based on verifiability,” the President declared, emphasizing his administration’s commitment to sustainable solutions rather than temporary fixes.
“We’re not just spraying deodorant on past issues; we are building the foundation for industrial growth.”
The President revealed his anticipatory approval for a ₦4 trillion bond program, though he stressed final amounts would depend on completed validations.
Special Adviser on Energy Olu Verheijen provided a progress report, confirming auditors have so far verified ₦1.8 trillion of the total claims, which encompass legacy power purchase agreements, unpaid gas supply contracts, and accumulated tariff shortfalls dating back to 2015.
Power Minister Adebayo Adelabu presented evidence of significant sector improvements under the current administration, including a remarkable 70% increase in revenue collection from ₦1 trillion in 2023 to ₦1.7 trillion this year. The Electricity Act of 2023 – the first legislation signed by President Tinubu – has successfully attracted over $2 billion in private investments while dramatically improving grid stability, with zero nationwide collapses recorded in 2025.
The minister also highlighted the ongoing Presidential Metering Initiative, which has already distributed 300,000 of 3.45 million procured smart meters, alongside the DISREP program supported by World Bank funding.
“The Presidential Power Initiative has rebuilt investor confidence,” Adelabu stated, noting Nigeria’s generation capacity now stands at 14,000MW with peak delivery reaching 5,801MW.
Despite these advancements, power sector leaders issued stark warnings about an impending collapse without immediate liquidity injections. Banking mogul Tony Elumelu delivered an impassioned appeal: “We’ve come to you as a last hope… Generation assets may shut down not from inefficiency, but unpaid debts.”
Kola Adesina of Sahara Power Group underscored the operational challenges caused by financial constraints, particularly chronic gas shortages: “Liquidity is our oxygen. The Afam plants are currently starved because we haven’t paid gas suppliers.”
Adesina urged the government to facilitate access to 800 million cubic feet of gas through NLNG to stabilize operations.
The high-level meeting brought together key government figures including Chief of Staff Femi Gbajabiamila, Finance Minister Wale Edun, Information Minister Mohammed Idris, and heads of critical regulatory agencies, demonstrating a whole-of-government approach to resolving the sector’s financial and operational challenges.
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