Nigeria’s President Bola Ahmed Tinubu has pleaded with power generation companies in Africa’s most populous nation to give his administration ample time to complete the verification and validation of longstanding debts owed to them.
According to the President, his administration is committed to resolving the liquidity challenges confronting Nigeria’s power sector to guarantee reliable electricity supply.
President Tinubu made the plea during a meeting with members of the Association of Power Generation Companies at the Presidential Villa in Abuja last weekend.
“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.”
The President stressed the need for patience from GENCOs and financial institutions, noting that government agencies are actively engaging audit and legal firms to scrutinize 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.
President Tinubu said the industry’s long-neglected legacy issues are now receiving the attention they deserve. “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.”
The President emphasized the government’s commitment to creating a stable investment environment and avoiding extreme measures, such as bank asset foreclosures, against the generation companies.
“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.”
Describing electricity as “the most important discovery of humanity in the last 1,000 years,” the President reaffirmed that access to electricity is fundamental to economic growth and human dignity.
The Special Adviser to the President, Ms. Verheijen, attributed the liquidity crisis to “a combination of unfunded tariff shortfalls and market shortfalls” that has built up over a decade. She stated that as of April 2025, the Federal Government is carrying a verified exposure of ₦4 trillion in debts to GENCOs, an accumulation dating back to 2015.
The Minister of Power, Chief Adebayo Adelabu, commended President Tinubu for the attention given to the power sector, stating that the administration’s reforms have restored investor confidence and improved performance across the electricity value chain.
Source: https://energynewsafrica.com
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