GENCO’s ₦4tr Debt: Tony Elumelu Says Power Is Key to Tinubu’s Economic Reforms

Tony Elumelu, chairman of Transcorp Group, says President Bola Tinubu’s economic reforms cannot succeed without reliable electricity.

Speaking at a meeting with the president and other stakeholders at the Presidential Villa on Friday, Elumelu warned that power generation companies (GENCOs) are owed ₦4 trillion by the federal government — a debt overhang that threatens the sector’s survival.

“Mr President, we’ve come to you as a last hope,” the frontline investor said. And added, “The GENCOs are heavily indebted to banks, and foreclosure threats are real — not because we’re not doing our jobs, but because the system owes us trillions.”

He said electricity is fundamental to economic growth and must not be sidelined. “We don’t need power to complete your transformation; we need power to enable it,” he added.

In response, Tinubu urged the GENCOs to be patient, assuring them of his commitment to resolving the liquidity crisis in the power sector.

“I accept the assets and liabilities of my predecessors,” he said. “But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability and authenticity. Give us time to do verification and validation of the numbers.”

The president disclosed that a ₦4 trillion bond programme has received anticipatory approval to settle verified debts, which currently stand at ₦1.8 trillion, according to the Nigerian Bulk Electricity Trading Company (NBET).

Tinubu also appealed to financial institutions to delay foreclosure actions on GENCO assets while the government completes its verification process.

“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,” Tinubu said