The Presidency says it’s engaged on clearing the ₦2 trillion debt owed to electrical energy era firms, a transfer seen as essential to saving Nigeria’s struggling energy sector.
Talking on the second Nigerian Electrical energy Provide Business (NESI) Stakeholders Assembly of 2025, held in Abuja on Monday, June 2, a consultant of the Particular Adviser to the President on Vitality, Eriye Onagoruwa, revealed that the federal authorities is already processing inner approvals to handle the large debt burden.
“We’re empathetic to what GenCos are going through,” Onagoruwa stated. “We’re exploring different debt devices, and I can affirm that each the Coordinating Minister of the Economic system and the Debt Administration Workplace are aligned with this effort. Inner approvals are at present underway.”
She didn’t give a particular deadline however expressed hope that by the following NESI assembly, a clearer image would emerge.
“I hope by the following NESI assembly, I will share a transparent replace,” she stated.
Her feedback observe mounting frustration from energy turbines, who lately warned that money owed owed by the federal authorities have ballooned to over ₦4 trillion.
The Senate Committee on Energy additionally raised issues, revealing that the federal government owes about ₦200 billion each month and has but to make any funds to GenCos this yr, pushing the 2025 debt alone to an estimated ₦800 billion.
The unpaid payments are weighing closely on the whole electrical energy worth chain and threaten to worsen the already erratic energy provide Nigerians face every day.
READ ALSO: Tinubu to Meet GenCos Over Looming Energy Disaster, ₦4tn Debt
On the assembly, hosted by the Nigerian Electrical energy Regulatory Fee (NERC), stakeholders mentioned a spread of challenges within the sector, from the widespread metering hole and the Presidential Metering Initiative to the rollout of the proposed Meter Asset Fund and the position of the Nigerian Impartial System Operator (NISO).
The transition to a decentralised electrical energy market, made doable by the Electrical energy Act 2023, additionally featured closely. However there have been cautionary notes.
John Akinnawo, Appearing Managing Director of the Nigerian Bulk Electrical energy Buying and selling Plc, warned that decentralisation may fragment the market if not correctly managed. He urged NISO to play a number one position in maintaining operations and insurance policies aligned.
NISO’s Managing Director, Abdu Mohammed Bello, outlined the company’s priorities, which embrace boosting system coordination, enhancing transparency, and strengthening stability throughout the nationwide grid.
Whereas no fast repair was introduced, stakeholders stated the Presidency’s renewed consideration to the GenCo debt gave them hope.
For a sector lengthy stricken by underinvestment, liquidity shortfalls, and coverage drift, the promise of decisive motion couldn’t come at a extra crucial time.
Whether or not the federal government delivers on that promise within the subsequent quarter stays to be seen, however the business, and the thousands and thousands it serves, will likely be watching carefully.
