The Traffic

Tinubu Summons Emergency Meeting with GenCos as N4 Trillion Debt Threatens Total Power Blackout

By Achimi Muktar

With Nigeria’s power sector teetering on the brink of collapse, President Bola Tinubu is set to hold a high-stakes meeting with the nation’s power generation companies (GenCos) in a bid to address a staggering N4 trillion debt threatening to plunge the country into darkness.

The urgent intervention was announced by the Minister of Power, Adebayo Adelabu, in a statement released Sunday through his media aide, Bolaji Tunji. The goal, Adelabu said, is to hammer out a “mutually agreeable solution” to the liquidity crisis that has destabilized the country’s electricity value chain.

“The Federal Government is committed to immediately offsetting a significant portion of the debt,” Adelabu revealed. “The balance will be settled using structured financial tools, such as promissory notes, over the next six months.”

The minister didn’t shy away from admitting the government’s role in the ongoing dysfunction, pointing to historical inefficiencies, payment shortfalls, and systemic bottlenecks. He called for sweeping reforms, including full liberalisation of the power sector and the implementation of cost-reflective tariffs, while promising that vulnerable Nigerians would still benefit from targeted subsidies.

A Sector on the Brink

Industry leaders are ringing alarm bells. Retired Colonel Sani Bello, a prominent GenCo stakeholder, warned that the power sector is “approaching a breaking point.” Kola Adesina, Chairman of Egbin Power Plc, went further, branding the situation “a national emergency.”

Joy Ogaji, CEO of the Association of Power Generation Companies (APGC), painted a grim picture: persistent non-payment, unreliable gas supply, and a depreciating naira have compounded the crisis, leaving GenCos struggling to stay afloat.

Presidential Pressure Mounts

The President’s intervention follows months of growing tension. In March 2025, Jennifer Adighije, Managing Director of the Niger Delta Power Holding Company (NDPHC), called for urgent presidential action to rescue stalled power projects and secure long-overdue payments.

Now, the pressure is at fever pitch. With the GenCos stretched to their limits, all eyes are on the impending meeting with President Tinubu—a critical moment that could determine whether Nigeria’s lights stay on or go out.

The outcome could reshape the future of power generation and supply in Africa’s largest economy.