The Presidency has commenced internal approval processes to pay the N2tn legacy debt owed to electricity generation companies before the end of the coming quarter, as part of efforts to stabilise Nigeria’s power sector.
A representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, made this known on Monday at the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission.
Onagoruwa said the Presidency was aware of the urgency of addressing the debt overhang, which has strained GenCos and affected electricity supply nationwide. She noted that alternative debt instruments are being explored due to the Federal Government’s current fiscal constraints.
“We are empathetic to what GenCos are facing,” she said. “We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort. Internal approvals are currently underway.”
Though she did not commit to any definitive timeline, Onagoruwa voiced hope that a clear update would be available before the next quarterly NESI Stakeholders Meeting, suggesting progress could be announced within the next three months.
“I hope by the next NESI meeting, I will be able to share a clear update,” she said.
Recall that Gencos had repeatedly appealed to the Federal Government over the continued accumulation of debts now totalling over N4tn.
The Senate Committee on Power recently voiced concerns over the liquidity challenge facing the power sector, lamenting that the tariff shortfalls in the industry showed that the government owes about N200bn to electricity-generating companies every month.
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