Tinubu pledges action on N4trn GENCO debt, urges patience as govt validates claims

From Juliana Taiwo-Obalonye, Abuja

President Bola Tinubu on Friday assured electricity generation companies (GENCOs) that his administration is committed to resolving Nigeria’s longstanding power sector debts, but appealed for more time to fully verify and validate the claims.

According to a statement issued by Special Adviser on Information and Strategy, Bayo Onanuga, the President acknowledged the sector’s liquidity crisis at the Meeting with Association of Power Generation Companies members, led by Col. Sani Bello (rtd), at the Presidential Villa, but stressed the importance of due diligence.

“I accept the assets and liabilities of my predecessors, and there is no question about that. But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion,” he said. Tinubu urged GENCOs and their financial partners to allow more time for what he called credible validation. “We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers.” He also cautioned banks against rushing to foreclosures on generation firm assets. “To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together.”

President Tinubu concluded by reaffirming his administration’s commitment to a market-driven, transparent electricity sector. “This is a longstanding issue that is now being dealt with.

I know how much we have been able to save on fuel subsidies.

We introduced the alternative, CNG, to bring relief back to the people.” He described electricity as “the most important discovery of humanity in the last 1, 000 years,” underscoring the urgency of reform for economic growth and dignity.

Special Adviser to the President on Energy, Olu Verheijen, revealed that a ₦4 trillion bond programme has received Tinubu’s anticipatory approval to address the sector’s liquidity challenges. She clarified, however, that only government-validated debts would be settled: “While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement of agreements. Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO.”