Nigeria is on the verge of a major electricity crisis, with approximately N4 trillion (around $2.7 billion USD) debt threatening to shut down the country’s power supply and leave millions in the dark.
To avert the looming crisis, President Bola Ahmed Tinubu is preparing to meet with leaders of the country’s electricity generating companies (GENCOs). The meeting follows emergency discussions held on Tuesday in Abuja between Energy Minister Adebayo Adelabu and GENCOs’ chairmen.
A statement from the Energy Ministry, released on Sunday, confirmed that liquidity challenges are placing the national grid under severe strain, with fears of widespread blackouts mounting.
Of the N4 trillion owed, N2 trillion is for power supplied in 2024, while N1.9 trillion represents arrears accumulated over previous years. The government says it intends to settle a substantial portion in cash and the rest through financial instruments such as promissory notes, over a six-month timeline.
Special Adviser to the Energy Minister, Bolaji Tunji, noted that this repayment strategy will be presented to the president during the upcoming meeting, as the administration scrambles to stabilise the sector.
While no official date has been announced, internal negotiations between key stakeholders are ongoing against the backdrop of a looming energy crisis that could leave millions without power.
