President Bola Tinubu is slated to meet with the leadership of Nigeria’s power-generating companies to discuss an emergency plan to settle the N4 trillion debt threatening to cripple the country’s electricity supply chain.

The move comes on the heels of a high-level meeting between the Minister of Power, Adebayo Adelabu, and chairmen of GenCos in Abuja, where the gravity of the situation was underscored. .

The meeting was convened amid growing concerns that the liquidity constraints in the sector could lead to a catastrophic failure of the national grid.

According to a statement by the minister’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, the Federal Government has resolved to settle a substantial portion of the debt immediately, with the remainder to be cleared through financial instruments such as promissory notes within the next six months.

The proposal, which is expected to be presented to President Tinubu during the meeting with GenCos’ leadership, aims to alleviate the financial burden on the power-generating companies and prevent a collapse of the sector.

The Minister of Power, Adebayo Adelabu, emphasized the urgency of the situation, describing it as a national emergency that requires immediate attention.

“We recognize the gravity of this matter, and the government is committed to resolving this debt to stabilize the sector and prevent further crisis.

“There is a need to pay a substantial amount of the debt in cash, and then ask for debt instruments in promissory notes to pay the rest,” Adelabu said.

The GenCos, led by the Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies, Col. Sani Bello (retd), have warned that the sector is on the brink of collapse due to the mounting debt and persistent liquidity challenges.

The debt, which totals over N4 trillion, comprises N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.

The meeting between President Tinubu and the GenCos’ leadership is expected to provide a solution to the debt crisis and prevent a collapse of the power sector, which would have far-reaching consequences for the Nigerian economy and citizens.

The Federal Government’s commitment to resolving the debt and stabilizing the sector is a welcome development, and it is hoped that the meeting will yield a positive outcome for all stakeholders involved.