President Bola Tinubu has promised to tackle the huge debt owed to electricity generation companies, but says the government needs more time to verify the claims.
Speaking at a meeting with the Association of Power Generation Companies at the Presidential Villa in Abuja on Friday, Tinubu said his government is committed to fixing the problems in the power sector but wants to do it properly.
“I accept the assets and liabilities of my predecessors, and there is no question about that,” he said. “But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and the fact that this inheritance is not a mere deodorant but a support structure for critical economic and industrial promotion.”
He asked the GENCOs and their banks to be patient as the government checks all the numbers.
“We are here. So market it to your other colleagues. Give us time to do verification and validation of the numbers,” Tinubu said.
He also warned banks not to rush into taking over GENCOs due to unpaid loans.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” the President added.
He said his administration wants a fair and open electricity market that supports growth. He mentioned the removal of fuel subsidies and the new use of Compressed Natural Gas (CNG) as part of the effort to reduce costs and help Nigerians.
“This is a longstanding issue that is now being dealt with. I know how much we have been able to save on fuel subsidies. We introduced the alternative, CNG, to bring relief back to the people,” Tinubu said.
Calling electricity “the most important discovery of humanity in the last 1,000 years,” he said reforms are urgently needed to support the economy and improve lives.
The President’s Special Adviser on Energy, Olu Verheijen, also confirmed that Tinubu has given early approval for a ₦4 trillion bond plan to solve the financial problems in the power sector.
“While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement of agreements. Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO,” she said.
