Nigeria’s presidency has reaffirmed its commitment to settle the nation’s N2 trillion legacy debt owed to electricity generation companies (GenCos) before the end of the third quarter of 2025.
This assurance was delivered on Monday by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, during the second Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2025, hosted by the Nigerian Electricity Regulatory Commission.
Onagoruwa emphasized that the federal government is fully aware of the urgent need to address the long-standing debt burden, which continues to strain GenCos, weaken electricity generation, and pose a looming threat of a complete sector shutdown.
She explained that President Bola Ahmed Tinubu’s administration, constrained by current fiscal limitations, is actively considering alternative debt instruments to resolve the crisis.
“We are empathetic to what GenCos are facing,” she said. “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.”
Despite previous commitments, the unresolved N4 trillion gas debt remains a major obstacle to stability in Nigeria’s power sector. The presidency’s latest assurance aims to restore confidence among stakeholders and avoid further disruptions in electricity supply.
The administration says it is determined to reset the energy sector and ensure a more reliable, transparent, and financially viable power system for all Nigerians.