The Presidency has begun internal approvals to settle a N2 trillion debt owed to electricity generation companies (GenCos), aiming to ease the liquidity crisis crippling Nigeria’s power sector.

Eriye Onagoruwa, a representative of the Special Adviser to the President on Energy, revealed this Monday at the Nigerian Electricity Supply Industry (NESI) Stakeholders’ Meeting in Abuja.

“We are empathetic to what GenCos are facing,” Onagoruwa said. “Alternative debt instruments are being explored, and both the Coordinating Minister of the Economy and the Debt Management Office are on board.”

Although no exact timeline was given, she said an update is expected before the next NESI meeting in three months.

This intervention follows growing alarm over the GenCo debt, which industry stakeholders say has now exceeded N4 trillion. The Senate Committee on Power recently disclosed that the government owes GenCos about N200 billion monthly in unpaid tariff shortfalls—accumulating over N800 billion since January alone.

At the meeting, stakeholders also discussed key reforms, including the Presidential Metering Initiative, the proposed Meter Asset Fund, and the establishment of the Nigerian Independent System Operator (NISO). Concerns over market fragmentation and the need for coordinated regulation across states were also raised.

NISO’s Managing Director, Abdu Mohammed Bello, outlined the agency’s role in promoting transparency and operational stability in the evolving power market.

Industry players welcomed the Presidency’s move, expressing hope that the financial intervention and broader reforms will put the electricity sector on a more sustainable path.