The Nigerian Presidency has initiated internal approval processes aimed at resolving the N2 trillion legacy debt owed to electricity generation companies (GenCos), with the goal of finalising a solution before the end of the next quarter.
Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, made the announcement on Monday at the 2025 Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting, organized by the Nigerian Electricity Regulatory Commission (NERC).
The debt burden, which dates back several years, has severely strained the financial health of GenCos and disrupted Nigeria’s fragile electricity supply chain.
Due to current fiscal constraints, the government is not planning to pay in cash outright, but is instead exploring alternative debt instruments, such as:
•Bonds
•Promissory notes
•Other financial mechanisms to settle liabilities over time.
Onagoruwa noted that:
“We are empathetic to what GenCos are facing. The Coordinating Minister of the Economy and the Debt Management Office are fully aligned. Internal approvals are currently underway.”
While no exact date was provided, the Presidency expects to offer a clear update within three months, likely by the next NESI Stakeholders Meeting.
Debt repayment is critical to restoring GenCo liquidity, boosting power generation, and attracting further investment into Nigeria’s electricity market.
Failure to resolve this issue may lead to continued generation shortfalls, worsened grid instability, and reduced investor confidence.
