Nigeria’s Minister of Power, Adebayo Adelabu, has praised President Tinubu for his decisive intervention in addressing the ₦4 trillion debt crisis threatening power generation companies (GENCOs), warning that the sector risks shutdowns without urgent liquidity support.
“Liquidity is the oxygen of the sector,” Adelabu said during a high-level meeting between the President and the Association of Power Generation Companies at the Presidential Villa.
He commended the administration’s commitment to resolving liquidity challenges, noting that President Tinubu’s direct engagement underscores his dedication to the stability and sustainability of Nigeria’s power sector.
Adelabu outlined reforms achieved since May 2023, crediting the President’s leadership for restoring investor confidence and improving performance across the electricity value chain.
Key achievements listed include the enactment of the Electricity Act (2023)—President Tinubu’s first signed legislation—which decentralises Nigeria’s power market, and the launch of the first Integrated National Electricity Policy in 24 years.
“Over $2 billion in new capital has been attracted for grid expansion and off-grid projects, while annual revenue rose by 70 percent—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—reducing government subsidy by ₦700 billion
“Installed generation capacity has increased from 13,000MW to 14,000MW, with an all-time peak of 5,801MW and zero national grid collapses in 2025,” he added.
He also revealed that over 300,000 smart meters have been delivered under the ₦700 billion Presidential Metering Initiative, with 3.45 million more in procurement.
Despite these milestones, Adelabu warned that the sector’s progress could be reversed by the ₦4 trillion legacy debt owed to GENCOs since 2015. He appealed for partial debt defrayment while audits are finalised, stressing that the reforms already lay the foundation for a self-sufficient power market.
Echoing concerns by industry leaders Tony Elumelu and Kola Adesina, Adelabu highlighted the need to resolve gas supply shortfalls, especially in the Afam axis, where unpaid gas suppliers have hampered generation.
He proposed unlocking 800 million cubic feet of gas through the Nigeria LNG to stabilise supply during the reform transition period.
Adelabu also endorsed the President’s call for patience from GENCOs and financial institutions during the ongoing debt verification process.
“While we understand investors’ frustrations, we must ensure that every liability is valid and verifiable. This administration will not inherit debts blindly but is committed to settling them transparently,” he stated.
He backed the ₦4 trillion bond programme, already granted anticipatory approval by the President, as a practical solution and urged stakeholders to finalise terms that guarantee only legitimate debts are securitised.
Reaffirming that electricity is central to Nigeria’s industrial aspirations, Adelabu called for collective commitment to sustain the sector’s revival and expressed confidence in overcoming legacy challenges with continued presidential support.
The meeting was attended by Chief of Staff Femi Gbajabiamila, Coordinating Minister of the Economy and Finance Wale Edun, Minister of Information Mohammed Idris, Special Adviser on Energy Olu Verheijen, GENCO Chairmen including Colonel Sani Bello (rtd), and industry leaders Tony Elumelu and Kola Adesina.
PIAK