Presidency Pledges to Clear Nigeria’s N2 Trillion Legacy Debt to Power Generators by Q3 2025

The Nigerian presidency has reiterated its commitment to settling the country’s outstanding N2 trillion legacy debt owed to electricity generation companies (GenCos) before the end of the third quarter of 2025.

This assurance was made by a representative of the Special Adviser to the President on Energy, Eriye Onagoruwa, during the 2025 Nigerian Electricity Supply Industry Stakeholders Meeting organized by the Nigerian Electricity Regulatory Commission on Monday.

Onagoruwa acknowledged the severe impact of the debt on GenCos, highlighting that the financial strain threatens electricity supply nationwide and could result in a shutdown of the power sector. She noted that due to current fiscal constraints, the government is exploring alternative debt instruments to settle the obligations.

“We are empathetic to what GenCos are facing,” she said, adding that the Coordinating Minister of the Economy and the Debt Management Office are aligned with the initiative and internal approvals are underway.

The power sector continues to grapple with a larger N4 trillion gas debt, which has persisted despite previous promises to resolve it. Earlier this year, GenCos threatened a shutdown over unpaid debts.

Minister of Power Adebayo Adelabu had earlier committed to clearing 50 percent of the N4 trillion debt by year-end.

Power sector stakeholders have cautioned the government to fulfill its promises to prevent a potential collapse of the electricity system.

Despite over a decade since its privatization, Nigeria’s power sector remains plagued by erratic supply, vandalism, poor infrastructure, investment shortfalls, and frequent grid failures.