The Minister of Power, Adebayo Adelabu,has revealed that the sector is facing an existential threat because of a N4 trillion debt owed to electricity generation companies (GENCOs).
According to Adelabu, the debt is a burden accumulated since 2015 that continues to undermine operational stability and investor confidence.
Adelabu, made the revelation at a meeting between the President and the Association of Power Generation Companies (APGC) at the Presidential Villa.
He said without urgent liquidity support, the sector faced the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
Adelabu appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasising that the Tinubu administration’s reforms had already laid the groundwork for a self-sufficient power market.
He also emphasised the urgent need to address gas supply shortfalls, particularly in the Afam axis, where unpaid gas suppliers had constrained generation.
He described liquidity as the oxygen of the sector and proposed immediate solutions, such as unlocking 800 million cubic feet of gas through NLNG, to stabilise generation while long-term reforms take root.
According to Adelabu, electricity remains the cornerstone of Nigeria’s industrial and economic ambitions, urging collective perseverance to sustain the sector’s revival. He expressed confidence that with the President’s continued support, the sector would overcome its legacy challenges and deliver stable, affordable power to every Nigerian.
Adelabu highlighted the transformative strides made in the power sector since May 2023, crediting the President’s visionary leadership for restoring investor confidence and driving tangible improvements across the electricity value chain. Nigerian cuisine recipes.
Credit: The Guardian Nigeria
