President Bola Tinubu is to hold an emergency meeting with the power generating companies (Gencos) to address N4 trillion debt threatening electricity supply in the country
.Bolaji Tunji, a Special Adviser to the Minister of Power, Adebayo Adelabu, disclosed this in a statement.
He said the Federal Government had promised to address the debt issue urgently following a meeting between the minister and some Chairmen of GenCos in Abuja last Tuesday.
The statement quoted the minister as assuring the GenCos that the government would prioritise immediate payment of a significant amount out of the N4 trillion debt, while the balance would be defrayed through other debt instruments.
He said this would be proposed in a meeting being planned between President Tinubu and GenCos’ leadership.
“There is need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument 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 said.
He said the president would meet with GenCos’ leadership to fast-track the process.The GenCoS were led by Col. Sani Bello, the Chairman of Mainstream Energy Solutions, who is also the Chairman of the Association of Power Generating Companies (APGA).
Bello had earlier described the N4 trillion debt as a critical threat to their operations and sounded the alarm over the sector’s dire state, He said liquidity challenges had left GenCos unable to secure loans or maintain their infrastructure.
