President Bola Tinubu has urged power generation companies (GENCOs) to give the federal government more time to complete the verification and validation of longstanding debts owed to them.
At a meeting with members of the Association of Power Generation Companies (APGC), led by Sani Bello, the group’s head, at the Presidential Villa in Abuja, Tinubu acknowledged the inherited liabilities from previous administrations and pledged transparency and fairness in resolving them.
The president said his administration remains committed to tackling the liquidity challenges facing the power sector.
“I accept the assets and liabilities of my predecessors, and there is no question about that,” he said.
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“But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.”
Tinubu emphasised the need for patience from GenCos and financial institutions, adding that government agencies are working with audit and legal firms to scrutinise the claims.
“We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers,” he said.
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Reaffirming his belief in a market-driven electricity sector, Tinubu said legacy issues in the industry are finally receiving the attention they require.
“This is a longstanding issue that is now being dealt with. I know how much we have been able to save on fuel subsidies. We introduced the alternative, CNG, to bring relief back to the people,” he said.
Tinubu also said the government is committed to maintaining a stable investment environment and avoiding harsh measures like bank asset foreclosures against GenCos.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” he said.
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Describing electricity as “the most important discovery of humanity in the last 1,000 years,” the president said access to electricity is fundamental to economic growth and human dignity.
‘N4TRN BOND PROGRAMME RECEIVES ANTICIPATORY APPROVAL’
On her part, Olu Verheijen, special adviser to the president on energy, said a N4 trillion bond programme has received anticipatory approval from the president to address the sector’s liquidity shortfall.
She said the crisis stems from “a combination of unfunded tariff shortfalls and market shortfalls” that have accumulated over the past decade.
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Verheijen said the federal government’s exposure to GenCos stood at N4 trillion as of April 2025, with the debts dating back to 2015.
“We have since sat with 27 GenCos — not all of them are here today — and reviewed their PPAs and gas sales agreements to understand the legitimacy of their claims. The GenCos claimed about N4 trillion from 2015 to the end of 2023,” she said.
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Verheijen said the Nigerian Bulk Electricity Trading Company (NBET), which mediates between GenCos and the government, has validated N1.8 trillion of the claims so far.
“Since that period, we have had N200 billion in unfunded subsidies that have accumulated the federal government’s liability,” she said.
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“So, as of April 2025, the total exposure that we are carrying at the moment is N4 trillion.”
However, she said the figure could be revised downward following final validation.
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“While there is an anticipatory approval of this N4 trillion bond programme, it is subject to negotiations and final settlement of agreements,” Verheijen said.
“Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO.”
On his part, Adebayo Adelabu, minister of power, said Tinubu’s commitment to the sector has restored investor confidence and improved performance across the electricity value chain.
