Nigeria Moves to Settle N4 Trillion Electricity Debt Amid Blackout Fears

The Nigerian federal government has pledged to urgently address a N4 trillion debt owed to Power Generation Companies (GenCos), comprising N1.9 trillion in legacy payments and N2 trillion for 2024, following high-level talks.
Minister of Power Adebayo Adelabu assured that part of the debt would be paid immediately in cash, with the remainder settled through promissory notes within six months to avoid a nationwide blackout.
The government aims to stabilize the power sector by fully liberalizing it, adopting reforms, and encouraging cost-reflective tariffs while maintaining targeted subsidies for vulnerable Nigerians.
GenCos leaders highlighted challenges including payment defaults, gas supply issues, and currency fluctuations, stressing the critical importance of resolving the debt to prevent sector collapse.