{"id":7728,"date":"2025-05-05T08:10:02","date_gmt":"2025-05-05T08:10:02","guid":{"rendered":"https:\/\/shakamomodu.com\/?p=7728"},"modified":"2025-05-05T08:10:02","modified_gmt":"2025-05-05T08:10:02","slug":"fg-begins-talks-to-settle-n4-trillion-debt-owed-gencos-averts-imminent-power-sector-collapse","status":"publish","type":"post","link":"https:\/\/shakamomodu.com\/index.php\/2025\/05\/05\/fg-begins-talks-to-settle-n4-trillion-debt-owed-gencos-averts-imminent-power-sector-collapse\/","title":{"rendered":"FG Begins Talks to Settle N4 Trillion Debt Owed Gencos, Averts Imminent Power Sector Collapse"},"content":{"rendered":"

Abuja, Nigeria \u2013 May 2025<\/em>
The Federal Government of Nigeria<\/strong> has commenced high-level negotiations with power Generation Companies (Gencos)<\/strong> to resolve the crippling \u20a64 trillion debt<\/strong> threatening to collapse the country\u2019s power sector.<\/p>\n

According to a statement from Bolaji Tunji<\/strong>, Special Adviser on Strategic Communications to the Minister of Power<\/strong>, Chief Adebayo Adelabu, the debt settlement talks are designed to stabilize Nigeria\u2019s fragile electricity supply system and prevent further disruption.<\/p>\n

During a critical meeting held in Abuja with Gencos’ executives, Adelabu assured the companies that government will immediately prioritize payment of a substantial portion<\/strong> of the outstanding debt. The balance, he said, will be managed through promissory notes and other debt instruments<\/strong> within a six-month period.<\/p>\n

\u201cWe must pay part in cash and settle the rest using structured instruments,\u201d Adelabu said, adding that a proposed meeting between President Bola Tinubu and Gencos\u2019 leadership<\/strong> will further advance the resolution strategy.<\/p>\n

The minister acknowledged that decades of financial mismanagement, subsidy burdens, and policy inconsistencies have eroded investor confidence and infrastructure stability in the power sector. He stressed the urgency of full sector liberalisation and the need for cost-reflective electricity tariffs<\/strong>, while assuring continued subsidies for Nigeria\u2019s most vulnerable.<\/p>\n

Col. Sani Bello<\/strong>, Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC)<\/strong>, described the situation as a \u201ccritical emergency,\u201d warning that liquidity constraints are pushing Gencos to the brink of operational shutdown.<\/p>\n

\u201cWithout urgent government action, the entire electricity value chain could collapse,\u201d Bello warned.<\/p>\n

Also present at the meeting was Kola Adesina<\/strong>, Chairman of Egbin Power and First Independent Power Limited, who emphasized the broader impact of power failure on homes, hospitals, and industries across the nation.<\/p>\n

APGC CEO Dr. Joy Ogaji<\/strong> cited multiple systemic challenges\u2014including erratic gas supply, forex instability<\/strong>, and unsustainable maintenance costs due to the naira’s depreciation from \u20a6157\/$1 in 2013 to \u20a61,600\/$1<\/strong>.<\/p>\n

\u201cDespite enormous operational risks, Gencos have remained patriotic,\u201d she said.<\/p>\n

Adelabu concluded by outlining the government\u2019s broader power sector reforms, which include regulatory reviews to lower levies and increase market efficiency. He also called for joint advocacy to educate Nigerians on electricity tariffs, energy efficiency, and sustainable usage<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Abuja, Nigeria \u2013 May 2025The Federal Government of Nigeria has commenced high-level negotiations with power Generation Companies (Gencos) to resolve the crippling \u20a64 trillion debt threatening to collapse the country\u2019s power sector. According to a statement from Bolaji Tunji, Special Adviser on Strategic Communications to the Minister of Power, Chief Adebayo Adelabu, the debt settlement […]<\/p>\n","protected":false},"author":3,"featured_media":7731,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"FG begins talks to resolve \u20a64 trillion Gencos debt, aiming to stabilize power sector and prevent nationwide blackout.","_seopress_robots_index":"","footnotes":""},"categories":[35],"tags":[],"class_list":["post-7728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7728"}],"collection":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/comments?post=7728"}],"version-history":[{"count":1,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7728\/revisions"}],"predecessor-version":[{"id":7732,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/7728\/revisions\/7732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media\/7731"}],"wp:attachment":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media?parent=7728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/categories?post=7728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/tags?post=7728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}