President Bola Tinubu is poised to meet the country’s power-generating companies (GenCos) to address the N4 trillion debt affecting Nigeria’s electricity supply chain. The meeting aims at finding solutions to incessant collapse of the national grid.
By Emma Ogbuehi
President Bola Tinubu is poised to meet the country’s power-generating companies (GenCos) to address the N4 trillion debt affecting Nigeria’s electricity supply chain. The meeting aims at finding solutions to incessant collapse of the national grid.
The meeting comes after a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and the chairmen of GenCos in Abuja over concerns of a potential collapse of the national grid due to liquidity constraints in the sector.
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Speaking on the development, Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, disclosed that the federal government has decided to settle a substantial portion of the debt immediately.
Tunji added that the remainder would be cleared through financial instruments such as promissory notes within the next six months.
He further shared that the above would be tabled in a planned meeting between President Tinubu and the leadership of GenCos.
“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated.
Many parts of the country have been thrown into darkness and businesses stalemated due to recurrent collapse of the national grid. While Nigerians blame the epileptic power supply to inefficiencies on the part of the GenCos, the organisations have claimed being owed backlog of debts by consumers, especially government agencies and institutions.
