- Safiu Kehinde
The Minister of Power, Adebayo Adelabu, has provided insight on President Bola Tinubu’s intervention in addressing the longstanding debt crisis affecting Nigeria’s power generation companies as well as the achievement recorded by the administration so far.
This was disclosed in a statement issued on Monday by Adelabu’s Special Adviser on Media, Bolaji Tunji.
A ccodring to the statement, the Minister gave the insight while peaking at a high-level meeting between the President and the Association of Power Generation Companies at the Presidential Villa, Abuja.
While lauding the administration’s commitment to resolving the liquidity challenges stifling the sector’s growth, Adelabu highlighted the transformative strides made in the power sector since May 2023.
He credited the President’s visionary leadership for restoring investor confidence and driving tangible improvements across the electricity value chain.
The Minister listed key achievements under the Tinubu administration which include the enactment of the Electricity Act (2023), the first legislation signed by President Tinubu, which decentralizes and liberalizes Nigeria’s electricity market to foster competition and private-sector participation.
This according to the statement, was followed by the launch of the first Integrated National Electricity Policy in 24 years, providing a coherent framework for sector planning and execution.
“Over $2 billion in new capital has been attracted for grid expansion and off-grid electrification projects, while annual sector revenue rose by 70 percent, from ₦1 trillion in 2023 to ₦1.7 trillion in 2024, reducing government subsidy obligations by ₦700 billion.
“Installed generation capacity has grown from 13,000MW to 14,000MW, with an all-time peak generation of 5,801MW and zero national grid collapses in 2025.
“Additionally, over 300,000 smart meters have been delivered under the ₦700 billion Presidential Metering Initiative, with 3.45 million more in procurement.” the statement partly read.
While celebrating these achievements, Adelabu warned that the sector’s progress risks being derailed by a N4 trillion debt overhang owed to GENCOs—a legacy liability accumulated since 2015.
He stressed that without urgent liquidity support, the sector faces the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
The Minister however appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasizing that the Tinubu administration’s reforms have already laid the groundwork for a self-sufficient power market.
He harped on the need to address gas supply shortfalls, as raised by industry leaders Tony Elumelu and Kola Adesina, particularly in the Afam axis, where unpaid gas suppliers have constrained generation.
Adelabu described liquidity as the oxygen of the sector and proposed immediate solutions, such as unlocking 800 million cubic feet of gas through NLNG, to stabilize generation while long-term reforms take root.
The Minister endorsed the President’s appeal for GENCOs and financial institutions to exercise patience as the government completes its verification process.
He acknowledged the frustrations of investors but stressed the need to ensure that every liability claimed is valid and verifiable.
“While the administration will not inherit debts without due scrutiny, it remains committed to resolving them transparently.” Adelabu maintained.
The Minister praised the N4 trillion bond program, granted anticipatory approval by the President, as a viable solution and urged stakeholders to collaborate on finalizing the terms to ensure only legitimate debts are securitized.
In his closing remark, Adelabu reiterated that electricity remains the cornerstone of Nigeria’s industrial and economic ambitions, urging collective perseverance to sustain the sector’s revival.
He expressed confidence that with the President’s continued support, the sector would overcome its legacy challenges and deliver stable, affordable power to every Nigerian.
According to the statement, the meeting was attended by the Chief of Staff to the President, Femi Gbajabiamila; the Coordinating Minister of the Economy and Finance, Wale Edun; the Minister of Information, Mohammed Idris; the Special Adviser on Energy, Olu Verheijen; GENCO Chairmen, including Col. Sani Bello (rtd); and industry leaders Tony Elumelu and Kola Adesina.