The Nigerian Presidency has initiated internal approval processes to address the N2 trillion legacy debt owed to electricity generation companies (GenCos), aiming to stabilize the power sector by the end of the next quarter. This was disclosed by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, at the second 2025 Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting. Given fiscal constraints, the government is considering alternative debt instruments, with key agencies such as the Coordinating Ministry of the Economy and the Debt Management Office aligned with the initiative.
The development follows mounting concerns from GenCos and the Senate Committee on Power over the sector’s worsening liquidity crisis, with GenCos claiming debts have ballooned to over N4 trillion. The committee revealed that the government owes about N200 billion monthly and has accumulated roughly N800 billion in unpaid bills this year alone. These shortfalls continue to impede electricity supply and destabilize power producers, prompting urgent calls for government intervention.
At the NESI meeting, stakeholders discussed broader sector reforms including the Presidential Metering Initiative, the Meter Asset Fund, and the creation of the Nigerian Independent System Operator (NISO). As Nigeria transitions to a multi-tier electricity market under the Electricity Act 2023, concerns about market fragmentation were raised, especially with decentralisation and state-level regulatory bodies emerging. NISO’s leadership emphasized the agency’s role in ensuring system coordination and policy harmonisation, while participants welcomed the Presidency’s debt resolution plan as a critical step toward long-term sector sustainability.
