The Nigerian Presidency has begun internal approval processes to settle the ₦2 trillion legacy debt owed to electricity generation companies (GenCos) before the end of the next quarter. The move aims to stabilize the country’s struggling power sector.
At the Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting, held on Monday, Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, confirmed the government’s commitment to addressing the debt crisis.
“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.”
While she did not provide a definitive timeline, Onagoruwa expressed hope that a clear update would be available before the next quarterly NESI Stakeholders Meeting.
“I hope by the next NESI meeting, I will be able to share a clear update,” she added.
The Senate Committee on Power recently raised concerns over the liquidity crisis affecting the power sector. It revealed that tariff shortfalls indicate that the government owes about ₦200 billion to electricity-generating companies every month. Since the beginning of the year, power producers have not been paid, increasing the debt to ₦800 billion.
Key Issues Discussed at the Meeting
The NESI Stakeholders Meeting brought together regulators, operators, and key players in the electricity value chain to address challenges and discuss sector reforms.
Topics covered included:
- The widening metering gap and the Presidential Metering Initiative
- The Meter Asset Fund proposal
- The establishment of the Nigerian Independent System Operator (NISO)
- The transition to a multi-tier electricity market
- The role of newly created State Electricity Regulatory Commissions
The acting Managing Director of the Nigerian Bulk Electricity Trading Plc, John Akinnawo, warned against the risk of market fragmentation due to decentralization efforts under the Electricity Act 2023. He urged NISO to lead policy and operational harmonization.
Meanwhile, NISO’s Managing Director, Abdu Mohammed Bello, outlined the agency’s vision and core functions, emphasizing its role in transparency, system coordination, and operational stability in Nigeria’s evolving electricity market.
Stakeholders welcomed the Presidency’s intervention on the GenCo debt and expressed optimism that ongoing reforms would help reposition Nigeria’s electricity supply industry for long-term sustainability.
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