By Hosea Parah, Abuja

Minister of Power, Chief Adebayo Adelabu, has praised President Bola Ahmed Tinubu for taking bold steps to tackle Nigeria’s power sector debt crisis, describing the President’s recent intervention as a turning point for electricity generation in the country.

Speaking after a high-level meeting at the Presidential Villa with the Association of Power Generation Companies (GENCOs), Adelabu said the President’s direct involvement demonstrated an unprecedented commitment to solving the liquidity crunch threatening the sector’s sustainability.

“The President’s leadership has restored investor confidence and delivered tangible results in less than two years,” Adelabu said. “We’ve achieved milestones many thought impossible.”

Among the reforms highlighted by the Minister were the enactment of the Electricity Act 2023, which decentralizes the power sector to encourage private sector participation; the launch of the first Integrated National Electricity Policy in 24 years; and the attraction of over $2 billion in new investment for grid and off-grid expansion projects.

According to Adelabu, annual revenue in the power sector surged by 70% — rising from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 — a development that slashed government subsidy obligations by ₦700 billion. The country’s installed generation capacity also rose from 13,000MW to 14,000MW, while 2025 recorded zero grid collapses and an all-time peak generation of 5,801MW.

The Minister also celebrated the rollout of over 300,000 smart meters under the ₦700 billion Presidential Metering Initiative, with 3.45 million more in the pipeline.

However, Adelabu cautioned that despite the gains, a massive ₦4 trillion debt burden owed to GENCOs, accumulated since 2015, poses a serious threat to the sector’s stability.

He called for partial defrayment of verified debts to avoid shutdowns by generation companies, warning that the fragile recovery could be reversed if liquidity issues are not urgently addressed.

Echoing sentiments from industry leaders such as Tony Elumelu and Kola Adesina, the Minister highlighted gas supply disruptions — particularly in the Afam region — as a major bottleneck, linked to unpaid obligations to gas suppliers. He proposed immediate measures including unlocking 800 million cubic feet of gas via the Nigeria LNG (NLNG) to stabilize generation output.

Adelabu backed the President’s call for patience from GENCOs and financial institutions while a comprehensive audit and debt verification process is completed. He emphasized the government’s resolve to pay only verified liabilities, but noted that the administration is not turning its back on the obligations of the past.

“The ₦4 trillion bond program, already approved in principle by the President, is a critical step,” Adelabu said. “But it must be implemented with transparency to ensure only legitimate debts are honored.”

In his remarks, the Minister described electricity as the cornerstone of Nigeria’s industrial ambitions and urged stakeholders to stay the course. “With the continued support of President Tinubu, I am confident this sector will overcome its legacy challenges and deliver affordable, reliable power to all Nigerians,” he concluded.

The meeting was attended by key government officials and power sector stakeholders, including Chief of Staff Femi Gbajabiamila, Coordinating Minister of the Economy and Finance Wale Edun, Minister of Information Mohammed Idris, Special Adviser on Energy Olu Verheijen, GENCO chairmen including Col. Sani Bello (rtd), and private sector leaders Tony Elumelu and Kola Adesina.