Tinubu’s Minister of Power, Adebayo Adelabu, Explains Nationwide Power Outage, Assures Nigerians Electricity Will Be Restored Within 48 Hours After Gas Pipeline Explosion

Nigeria’s Minister of Power, Adebayo Adelabu, has given an update on the nationwide power outage affecting homes, offices, and industries across the country. Adelabu explained that the drop in electricity supply was caused by a temporary shortfall in power generation following an explosion on the Escravos–Lagos Gas Pipeline and acts of vandalism on critical gas infrastructure. He assured Nigerians that repairs are ongoing and that power generation and supply are expected to be fully restored within 24 to 48 hours, especially as electricity demand rises during the Yuletide season. Power sector stakeholders, including TCN, NISO, GENCOs, and DISCOs, confirmed efforts to meet the restoration timeline, while distribution companies like IBEDC apologised to customers for the inconvenience caused by intermittent supply.

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FG Launches N590bn Bond Issuance to Begin Clearing N4tn Power Sector Debt

The Federal Government has started the repayment process for the N4 trillion owed to Power Generation Companies through a N590 billion inaugural bond offering.

Backed by Federal Government guarantee, this first tranche is part of a comprehensive N4 trillion NBET Finance Company Plc Bond Programme. The package includes N300 billion in cash bonds for public subscription and N290 billion in non-cash bonds to be distributed directly to GenCos on matching terms.

Federal Government and GenCos seal agreement on N4 trillion power sector debt payment

BREAKING NEWS: President Bola Tinubu Meets With GenCos Chairmen and Pledges To Resolve Debt Claims.

Gencos Warn as FG’s Debt Surpasses N5.2 Trillion.

Power Generation Companies (Gencos) have raised alarm over the mounting debts owed by the Federal Government, revealing that arrears hit N1.2 trillion in the first half of 2025 alone.

According to them, total outstanding debts, including legacy debts of N1.9 trillion from 2015 to 2024, and another N2 trillion from 2024 have now ballooned to approximately N5.2 trillion.

The Association of Power Generation Companies (APGC), through its Executive Secretary, Dr. Joy Ogaji, issued a statement in reaction to reports suggesting that the Federal Government may absorb the burden of electricity subsidies introduced by the Enugu Electricity Regulatory Commission (EERC), which recently reduced tariff from N209 to N160 per kilowatt-hour.

The Gencos expressed concern that the tariff decision in Enugu could set a precedent for other states. They noted that under the current tariff structure, only N45 out of the N112 allocated is designated for power generation, raising alarm over the implications for electricity decentralisation to state governments.

Dr. Ogaji clarified that there is no official federal policy backing the subsidies and described the situation as unchecked debt accumulation. She noted that although Gencos issue monthly invoices averaging N250 billion, the 2025 national budget allocates just N900 billion for the entire year and even that is not fully cash-backed.

“This is a serious systemic risk that must be addressed at the presidential level,” Ogaji said. “The federal budget is grossly inadequate to settle existing arrears and projected deficits.” Despite consistently meeting and exceeding their generation capacity requirements, Gencos say they have never received full payment, nor have they had guaranteed gas supply, timely remittance, or protection against grid inefficiencies.

Additionally, the sector is heavily impacted by foreign exchange volatility, with over 90% of operational costs denominated in dollars, while inefficient grid operations continue to drive up maintenance expenses.

BREAKING: Presidency Moves to Settle ₦2 Trillion Power Sector Debt by Next Quarter

In a major development for Nigeria’s power sector, the Presidency has initiated internal approval processes aimed at resolving the ₦2 trillion legacy debt owed to electricity generation companies (GenCos).

The move is seen as a significant step toward stabilizing the electricity supply chain, restoring investor confidence, and ensuring smoother operations within the energy market.

Government officials say the resolution is expected to be finalized before the end of the next quarter, signaling renewed commitment to sector-wide reforms and financial accountability.

This debt has long been a critical bottleneck in the power value chain, affecting payments to gas suppliers, operational efficiency, and long-term sustainability of power generation in Nigeria.

⸻According to Nigeria stories


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