President Bola Ahmed Tinubu has appealed to power generation companies (GenCos) to allow the Federal Government additional time to verify and validate over ₦4 trillion in outstanding debts, assuring that his administration is committed to resolving the liquidity crisis threatening Nigeria’s power sector.
The President made the appeal on Friday during a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa, Abuja.
Acknowledging the inherited liabilities, President Tinubu reiterated his administration’s commitment to transparency and accountability in addressing the debt burden.
“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, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion,” Tinubu stated, according to a statement issued by Presidential Spokesman Bayo Onanuga.
He urged the GenCos and their financial partners to exercise patience while government agencies work with audit and legal firms to scrutinise all claims.
“We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers,” he said.
Reaffirming his support for a market-driven electricity sector, Tinubu noted that longstanding issues are finally being addressed.
“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 added.
The President also appealed to the banking sector to refrain from harsh recovery methods, such as foreclosures, in the face of the sector’s challenges.
“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.
Speaking at the event, Special Adviser to the President on Energy, Olu Verheijen, disclosed that a ₦4 trillion bond programme has received anticipatory approval from the President to bridge the liquidity gap in the power industry.
Verheijen explained that the debt covering the period 2015 to 2023 results from unfunded tariff shortfalls and market imbalances, noting that the Nigerian Bulk Electricity Trading Company (NBET) has so far validated ₦1.8 trillion of the total claims.
“Since that period, we have had ₦200 billion in unfunded subsidies that have accumulated the federal government’s liability. So, as of April 2025, the total exposure that we are carrying is ₦4 trillion,” she said.
However, she clarified that the ₦4 trillion figure is subject to downward adjustment after further verification and negotiations.
“Only the amounts that the federal government validly owes are the things that will make it into the issuance by the DMO,” she noted.
The meeting reaffirmed the administration’s resolve to stabilise the power sector, restore investor confidence, and foster long-term solutions to Nigeria’s energy challenges through credible reforms and transparent engagement.
