On Monday, the Minister of Power, Adebayo Adelabu, said over $2 billion has been attracted in new capital for grid expansion and off-grid electrification projects.
Mr Adelabu disclosed this in a statement commending President Bola Tinubu for his intervention in addressing the longstanding debt crisis affecting Nigeria’s power generation companies.
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On Friday, Mr Tinubu appealed to power generation companies (GenCos) to give the federal government more time to complete the verification and validation of longstanding debts owed to them.
During a meeting with members of the Association of Power Generation Companies, led by Sani Bello, at the Presidential Villa in Abuja, the President assured them of his administration’s commitment to resolving the liquidity challenges in the power sector, the Special Adviser to Mr Tinubu on Information and Strategy, Bayo Onanuga, said in a statement.
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On Monday, Mr Adelabu, in a statement by Bolaji Tunji, his special adviser on strategic communication and media relations, emphasised that Mr Tinubu’s presence at the meeting underscored his unwavering dedication to the stability and sustainability of the country’s power sector.
He noted that in less than two years, the administration had achieved critical milestones that were once deemed impossible.
“Over $2 billion in new capital has been attracted for grid expansion and off-grid electrification projects, while annual sector revenue rose by 70 per cent, from N1 trillion in 2023 to N1.7 trillion in 2024, reducing government subsidy obligations by N700 billion,” Mr Adelabu said.
He said installed generation capacity has grown from 13,000MW to 14,000MW, with an all-time peak generation of 5,801MW and zero national grid collapses in 2025.
Additionally, the minister said over 300,000 smart meters have been delivered under the N700 billion Presidential Metering Initiative, with 3.45 million more in procurement.
While celebrating these achievements, Mr Adelabu warned that the sector’s progress risks being derailed by a N4 trillion debt overhang owed to GenCo’s legacy liability accumulated since 2015.
He stressed that without urgent liquidity support, the sector faces the real risk of generation shutdowns, which would cripple the economy and undo the hard-earned gains.
He appealed for partial debt defrayment to sustain operations while audit processes conclude, emphasising that the Tinubu administration’s reforms have already laid the groundwork for a self-sufficient power market.
“While the administration will not inherit debts without due scrutiny, it remains committed to resolving them transparently,” the statement said.
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The minister reiterated that electricity remains the cornerstone of Nigeria’s industrial and economic ambitions, urging collective perseverance to sustain the sector’s revival.
He expressed confidence that with the president’s continued support, the sector would overcome its legacy challenges and deliver stable, affordable power to every Nigerian.
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