Presidency Moves to Settle N2tn Power Debt Crisis

The Nigerian presidency has reiterated its commitment to settling the N2 trillion legacy debt owed to electricity generation companies by the end of Q3 2025.

This assurance was given on Monday by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, during the second Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission.

Onagoruwa emphasized that the presidency acknowledges the urgency of resolving the debt burden, which has heavily impacted GenCos and disrupted electricity supply across the country—posing a risk of a potential sector-wide shutdown.

She added that, due to current fiscal limitations, the Tinubu administration is exploring alternative debt instruments to fulfill its repayment obligations.

“We are empathetic to what GenCos are facing,” she said.

“We are exploring alternative debt instruments, and I can confirm that both the Coordinating Minister of the Economy and the Debt Management Office are aligned with this effort. Internal approvals are currently underway,” she stated.

The lingering N4 trillion gas debt remains a major challenge in Nigeria’s power sector, despite repeated assurances of resolution.

In April, generation companies (GenCos) threatened to shut down operations over the unpaid debt owed to market operators.

Previously, Minister of Power Adebayo Adelabu pledged that the government would clear 50 percent of the debt before the end of 2025.

However, stakeholders in the power sector have cautioned that the federal government must back its promises with concrete action to prevent a looming collapse of the nation’s power infrastructure.