By Onyeanya Ebere
The Presidency has initiated internal approval processes to settle a N2 trillion legacy debt owed to electricity generation companies (GenCos), with resolution expected before the end of the next quarter.
Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, disclosed this at the second Nigerian Electricity Supply Industry (NESI), Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC).
According to Onagoruwa, the Federal Government acknowledges the urgent need to address the debt overhang, which has strained GenCos and disrupted power supply across the country.
She said alternative debt instruments are being considered due to the government’s fiscal constraints.
“We are empathetic to what GenCos are facing,” she said. “Internal approvals are underway, and both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort.”
While she did not give a definite timeline, Onagoruwa hinted that a concrete update could be provided by the next NESI meeting in three months.
The intervention comes amid mounting concerns from stakeholders. The Senate Committee on Power recently revealed that GenCos are owed about N800 billion so far in 2025, with tariff shortfalls costing the government nearly N200 billion monthly.
Earlier reports indicated that GenCos had raised alarms over cumulative debts now exceeding N4 trillion.
At the stakeholders’ meeting, key issues discussed included the widening metering gap, the Presidential Metering Initiative, the proposed Meter Asset Fund, and the establishment of the Nigerian Independent System Operator (NISO).
Also on the agenda were the transition to a multi-tier electricity market and the growing roles of newly established State Electricity Regulatory Commissions.
John Akinnawo, Acting Managing Director of the Nigerian Bulk Electricity Trading Plc, warned of the risk of market fragmentation amid decentralisation under the Electricity Act 2023.
He urged NISO to lead efforts in ensuring policy and operational harmonisation.
NISO Managing Director, Abdu Mohammed Bello, outlined the agency’s vision and core functions, emphasizing its role in improving transparency, system coordination, and operational stability in the evolving power market.
Stakeholders welcomed the Presidency’s intervention and expressed hope that the combined reforms would reposition Nigeria’s electricity sector for long-term sustainability.
