The Presidency has commenced internal approval processes aimed at resolving the N2 trillion legacy debt owed to electricity generation companies (GenCos) before the end of the coming quarter.
This was revealed on Monday during the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission (NERC).
According to a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, the Federal Government is taking urgent steps to address the financial challenges faced by GenCos. She noted that the Presidency acknowledges the critical impact of the debt on Nigeria’s power supply and is committed to finding a sustainable solution.
“We are empathetic to what GenCos are facing,” Onagoruwa stated. “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.”
Due to current fiscal constraints, the government is considering non-traditional repayment methods. Onagoruwa did not specify a firm timeline for disbursement but hinted at potential progress before the next quarterly NESI meeting.
The debt, which has lingered for several years, has strained operations across the power sector, with many GenCos struggling to maintain output. Resolving this issue is seen as vital to stabilising electricity supply and investor confidence in the sector.
Onagoruwa concluded with cautious optimism, suggesting that a definitive update could be announced within three months, pending the successful completion of internal approvals.
