President Bola Tinubu has assured power generation companies (GenCos) of his administration’s commitment to settling legacy debts owed to them, but stressed the need for verification and validation before payments are made.
He made the remarks while receiving members of the Association of Power Generation Companies at the Presidential Villa in Abuja on Friday.
The delegation was led by retired colonel and former Niger State governor, Sani Bello, and included several industry leaders.
Speaking after the meeting, Olu Verheijen, special adviser to the president on energy, said the administration has approved the framework for a ₦4 trillion bond programme to address liquidity challenges in the power sector.
According to her, a significant portion of the debt has already been verified by the Nigerian Bulk Electricity Trading Company (NBET), and the rest is being audited before the bond is finalised.
President Tinubu said that while he is willing to take responsibility for debts inherited from past administrations, it must be done on “credible grounds.”
“I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity…,” he said.
He urged the GenCos and banking institutions involved not to lose faith in the reform process.
“Let us avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” Tinubu said, adding that he is committed to implementing sustainable power reforms under his Renewed Hope Agenda.
Two major power sector players, Tony Elumelu, chairman of Transcorp Group, and Kola Adesina, group managing director of Sahara Power Group, highlighted the urgency of resolving the debt crisis to preserve the industry.
Elumelu said GenCos had been resilient despite huge debts that threatened their operations.
Adesina, on his part, urged the government to facilitate the immediate release of 800 million standard cubic feet of gas currently locked up by NLNG, which he said could power plants in the Afam axis and improve generation.
Power minister Adebayo Adelabu said the Tinubu administration had made notable progress in stabilising the sector.
He cited the signing of the Electricity Act 2023 and Nigeria’s first Integrated National Electricity Policy in 24 years as major milestones.
He said installed generation capacity had reached 14,000 MW while peak generation now stood at 5,801 MW, adding that sector revenue had increased by 70 per cent in one year.
Adelabu also mentioned progress in metering, with the Presidential Metering Initiative and the World Bank–funded DISREP programme delivering 300,000 smart meters. Transmission capacity, he added, had expanded through the Presidential Power Initiative.
Mrs Verheijen said the total exposure as of April 2025 stood at ₦4 trillion, including ₦1.8 trillion in verified NBET liabilities and ₦200 billion in subsidy shortfalls.
According to her, he bond programme would only cover claims validated through legal and financial reviews, and the process would involve extensive consultations with stakeholders.
