The Minister of Power, Adebayo Adelabu, has warned that Nigeria’s power sector could face imminent collapse if urgent liquidity support is not provided to offset the N4tn debt owed to power generation companies.
Speaking during the recent meeting between President Bola Tinubu and members of the Association of Power Generation Companies at the Presidential Villa, Adelabu said the debt overhang, a legacy liability dating back to 2015, poses a grave threat to the sector’s progress and the broader economy.
A statement by the minister’s spokesman, Bolaji Tunji, on Monday, said Adelabu warned that the sector’s “progress risks being derailed by a N4tn debt overhang owed to Gencos—a legacy liability accumulated since 2015.”