FG to Clear N2 Trillion GenCo Debt by Q3 2025 to Boost Power Sector
Written by Olakunle Oke on June 3, 2025
The Nigerian Presidency is taking decisive steps to resolve a major financial bottleneck in the power sector by aiming to clear a N2 trillion debt owed to electricity generation companies (GenCos) by the third quarter of 2025.
A Strategic Move Toward Energy Sector Stability
Speaking at the NESI Stakeholders Meeting, Eriye Onagoruwa—representing the Special Adviser to the President on Energy—stated that due to current fiscal constraints, the government is exploring alternative debt instruments to settle the outstanding amounts. An update on the strategy is expected within the next three months.
Further complicating the situation, the Senate Committee on Power revealed that the sector’s total debt has reached N4 trillion, with N800 billion accruing just this year alone.
Despite the challenges, stakeholders expressed optimism, especially with the rollout of reform measures like the:
Presidential Metering Initiative (to improve billing transparency)
Nigerian Independent System Operator (to enhance grid efficiency)
If successfully implemented, the debt clearance and reform efforts could restore investor confidence and bring long-overdue stability to Nigeria’s power sector.
