The presidency said internal approvals are currently in progress to resolve the N2 trillion legacy debt owed to electricity generation companies (GenCos), a move aimed at stabilising Nigeria’s fragile power sector.
Eriye Onagoruwa, who represented the special adviser to the president on energy, Olu Verheijen, disclosed this during the second Nigerian Electricity Supply Industry (NESI) stakeholders meeting of 2025.
“We are empathetic to what GenCos are facing. 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,” she said.
“Internal approvals are currently underway,” she added, noting that while specific timelines cannot yet be confirmed, significant groundwork has already been done.
“I hope by the next NESI meeting, I will be able to share a clear update,” she said.
Her comments follow repeated appeals by GenCos, who in April raised alarm over outstanding debts of approximately N4 trillion—comprising N2 trillion for electricity generated in 2024 and an additional N1.9 trillion in legacy arrears.
The companies had warned that the debt burden poses a serious risk to the continued operation of their power plants and called for urgent intervention from the federal government and other stakeholders.
On April 15, Bola Tunji, spokesperson to the minister of power, Adebayo Adelabu, confirmed that the federal government has concrete plans to clear the debts owed to GenCos.
Adelabu later announced on May 5 that the government may resort to borrowing in order to pay off part of the N4 trillion debt.
