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Tinubu seeks time to verify N4tn GENCO debt

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President Bola Tinubu on Friday asked electricity generation companies to grant the Federal Government more time to “do verification and validation of the numbers” on longstanding liabilities the power market says it is owed.

He also gave anticipatory approval for a N4tn bond programme to plug the sector’s liquidity hole.

This followed the President’s meeting with the Association of Power Generation Companies, led by Col. Sani Bello (retd.), at the Aso Rock Presidential Villa, Abuja.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed details of Friday’s talks in a statement titled, ‘President Tinubu meets Chairmen of GENCOs, pledges to resolve longstanding debt claims.’

Nigeria privatised its generation and distribution assets in 2013, but chronic under-recovery of tariffs, unpaid subsidies, gas supply constraints, weak transmission capacity and pervasive energy theft have kept the market cash-strapped.

The Nigerian Bulk Electricity Trading Company routinely pays GENCOs a fraction of their monthly invoices, creating an ever widening arrears book that is then financed with short-term bank debt at double digit interest rates.

The signing of the Electricity Act 2023 by President Tinubu pushed for cost reflective tariffs, metering programmes and transmission upgrades and lifted collections.

However, legacy debts and gas under-supply still threaten generation capacity and fresh investment.

With banks tightening exposure limits, GENCOs warned that foreclosures could cascade through the value chain without an immediate government backed settlement plan.

At Friday’s meeting, President Tinubu acknowledged the historic arrears but insisted payments would be anchored on a transparent audit.

“I accept the assets and liabilities of my predecessors, and there is no question about that. 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 stated.

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The President appealed for patience from GENCOs and lenders while government firms engage auditors and lawyers to scrub the claims.

“We are here. So, market it to your other colleagues. Give us time to do verification and validation of the numbers,” he said.

Reiterating his preference for a market-driven power industry, Tinubu said the sector’s “long neglected legacy issues” are finally being addressed.

The President also cautioned banks against pulling the plug on indebted GENCOS.

“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.

“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,” he stated.

Describing electricity as “the most important discovery of humanity in the last 1,000 years,” Tinubu reaffirmed that access to power was fundamental to growth and human dignity.

The Special Adviser to the President on Energy, Olu Verheijen, said the administration was confronting a decade long cash crunch rooted in tariff and market shortfalls.

Verheijen disclosed that, “As of April 2025, the Federal Government is carrying a verified exposure of N4tn in debts to GENCOs, an accumulation dating back to 2015.

“We have since sat with 27 GENCOs—not all of them are here today—and reviewed their PPAs and gas sales agreements to understand the legitimacy of their claims. The GENCOs claimed about N4tn from 2015 to the end of 2023.”

According to her, the Nigerian Bulk Electricity Trading Company has validated N1.8tn of these claims so far.

“Since that period, we have had N200bn in unfunded subsidies that have accumulated the Federal Government’s liability. So, as of April 2025, the total exposure that we are carrying at the moment is N4tn,” she added.

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However, she warned that the figure remained subject to downward revision, pending final validation.

“While there is an anticipatory approval of this N4tn 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,” Verheijen noted.

The Minister of Power, Adebayo Adelabu, commended President Tinubu for the attention given to the power sector, stating that the administration’s reforms had restored investors’ confidence and improved performance across the electricity value chain.

“Your Excellency, your presence at this meeting is a clear testament to your unwavering commitment to the sustainability, stability, and long-term development of Nigeria’s power sector. Under your leadership, we have recorded critical milestones in less than two years,” the minister said.

Adelabu said the Tinubu administration signed into law the Electricity Act, 2023, decentralising and liberalising the electricity market.

He noted that the administration had launched Nigeria’s first Integrated National Electricity Policy in 24 years, attracted over $2bn in new private capital, and grown sector annual revenue by 70 per cent—from N1tn in 2023 to N1.7tn in 2024—reducing government subsidy obligations by over N700bn.

Adelabu added that installed generation capacity had grown from 13,000 MW to 14,000 MW, with an all-time peak generation of 5,801 MW and a record maximum daily energy delivery of 120,370 MWh, achieved on March 4, 2025.

According to him, there has been no national grid collapse in 2025, a direct result of interventions under the Presidential Power Initiative, which has added over 700 MW of transmission capacity.

He reported progress in narrowing Nigeria’s metering gap through the N700bn Presidential Metering Initiative (via FAAC) and the World Bank supported DISREP, which has already delivered 300,000 smart meters out of 3.45 million procured.

While acknowledging these strides, Adelabu cautioned that the sector is grappling with an urgent liquidity crisis that could undermine ongoing reforms.

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“Mr. President, given the grave implications of this debt overhang, including the risk of a nationwide shutdown of generation assets, I humbly seek your immediate support for defraying these obligations, even if partially, over a defined period,” he stated.

In separate remarks, business leaders, Tony Elumelu and Kola Adesina, appealed for urgent intervention.

“Mr. President, we’ve come to you as a last hope. The generating companies 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,” Elumelu said.

He added, “Before you took office in 2023, we lost 97 per cent of our daily oil production. Today, we are retaining 98 per cent. That’s transformation. Investors are seeing greater stability and predictability. We don’t need power to complete your transformation, we need power to enable it. Power is critical to unlocking Nigeria’s full potential. We urge you to help solve this debt problem.”

Adesina also stressed liquidity and gas supply: “Liquidity is the oxygen of our business. Without urgent intervention, generation capacity will stall, and Nigeria’s industrial and economic ambitions will be jeopardised.

“The plants in the Afam axis are underperforming because we have not paid gas suppliers. We propose unlocking 800 million cubic feet of gas through NLNG to boost supply to these power plants.”

Friday’s meeting was attended by the President’s Chief of Staff, Femi Gbajabiamila; Coordinating Minister of the Economy and Finance Minister Wale Edun; Minister of Information Mohammed Idris; and other senior officials, regulators and stakeholders — underscoring the political and financial weight now being thrown at the sector’s decade-old debt gridlock.

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What Nigeria’s 6 geo-political zones contributed to VAT & received in October 2025

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1. South-west
Contributed: N333.01bn
Received: N91.88bn (27.59%)

2. South-south
Contributed: N80.48bn
Received: N53.79bn (66.84%)

3. North-west
Contributed: N41.82bn
Received: N64.07bn (153.20%)

4. North-central
Contributed: N20.51bn
Received: N44.32bn (216.09%)

5. North-east
Contributed: N18.94bn
Received: N44.17bn (233.21%)

6. South-east
Contributed: N13.26bn
Received: N36.91bn (278.36%)
Source: FAAC/TheCableIndex

Credit: Ethnic African Stories

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See real reason ex-defence minister, Badaru resigned

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Details have emerged on the reason behind the sudden resignation of a former Minister of Defence, Badaru Abubakar, after two years in office.

Badaru resigned his position on Monday, citing health concerns.

In his place, President Bola Tinubu swore in a former Chief of Defence Staff, General Christopher Musa (retd.) as the new Minister of Defence.

Announcing Badaru’s resignation, the Special Adviser on Information and Strategy to the President, Bayo Onanuga, said in a statement that the former minister stepped down on account of “poor health.”

However, findings by Saturday PUNCH showed that the former minister was compelled to resign following a protracted cold war between him and the Minister of State for Defence, Bello Matawalle, a rift that had been carefully kept away from the media for months.

Badaru was appointed on August 21, 2023, months after completing his two term tenure as Jigawa State governor.

His appointment reportedly rested on his administrative credentials and regional influence in the North West, a region grappling with escalating banditry and insurgency.

After being sworn in alongside other ministers, Badaru was said to have prioritised military modernisation, intelligence reforms and counter terrorism operations.

Tinubu also appointed Matawalle on the same day to support Badaru, the senior minister, in executing defence policies.

However, in recent weeks, the two men came under intense public scrutiny following the resurgence of bandit and terror attacks, which prompted Tinubu to declare a nationwide security emergency.

The worsening insecurity snowballed into mass abductions of schoolchildren, with dozens of pupils and students kidnapped across several northern states.

The student kidnappings heightened pressure on the former defence minister, with some analysts calling for his removal on the grounds that he was failing to lead the ministry effectively.

The security crisis also renewed global scrutiny of Nigeria’s security posture, especially from the Trump administration which, in late October, re-designated Nigeria as a Country of Particular Concern over the alleged mass killing of Christians.

Amid mounting public outrage, the defence minister tendered his resignation on December 1.

In separate interviews with Saturday PUNCH, credible military sources within the defence ministry said Badaru’s long-running animosity with Matawalle, rather than health concerns, ultimately forced him out.

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An official of the ministry, who requested anonymity because he was not authorised to speak publicly, said the two ministers maintained a cordial appearance in public but had a “frosty relationship” behind the scenes.

“Matawalle and Badaru had a frosty relationship for most of the period he was minister, although they appeared cool with each other in public. But it is a known fact here that they had something against themselves,” the official said.

According to him, the tension affected some aspects of the ministry’s work, including media coordination.

“This affected some of their work. Even as a journalist, does the media unit look coordinated to you? Was this how it was being run before they came?

“Pairing the two together as ministers is something that ought not to have happened in the first place,” he added.

Another military source said it was believed that Matawale had a strong relationship with the presidency and was becoming domineering within the ministry.

The source noted that some party leaders within the All Progressives Congress considered Matawale as a political asset for the current administration, particularly within the north-western parts of the country.

“Matawale is from Zamfara State, and he has a very strong political presence in the state. The APC leaders see him as an asset for the 2027 election. So, they’re always on his side. He has the political backing and connection.

“But Badaru is weak, politically. The presidency does not actually reckon with him when it comes to power play and politics,” the source explained.

Calls for Matawalle’s resignation

Since Badaru resigned last week, some Nigerians, including activists and political commentators have amplified calls for Matawalle’s removal as Minister of State for Defence over the country’s security crisis.

Matawalle, a former Zamfara State governor, has faced periodic calls to step down, particularly from opponents in his home state.

In September 2024, Zamfara Governor Dauda Lawal publicly urged him to resign over alleged links to bandit groups, allegations Matawalle has repeatedly denied.

At the time, Lawal demanded that the minister cleared his name or resign.

Earlier, a petition by the APC Akida Forum also asked authorities to suspend Matawalle pending investigations into claims of collusion with criminal networks.

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In November 2025, the Good Governance and Accountability Monitoring Group asked the President to fire the minister, accusing him of “complicity” and “poor performance” as insecurity persisted.

Despite the clamour, officials within the ministry said Matawalle might retain his office amid shakeups in the security establishment in the past two months.

Also, officials in the Presidency, who confided in our correspondent, said Matawalle was appointed as part of a broader, coordinated response to banditry.

They cited his recent assignment to Kebbi State after the abduction of 24 students from Government Girls Comprehensive Secondary School, Maga, where a joint operation led to the girls’ release.

Meanwhile, Matawalle was notably absent on Friday when Gen. Musa (retd.) formally assumed office at the Ministry of Defence, Abuja.

There was no official explanation for his absence as of press time.

Musa, who was sworn in on Thursday by President Tinubu, arrived at the ministry to a reception dominated by the service chiefs, the permanent secretary and other senior officials.

Musa to review theatre commands

The new defence minister announced that one of his first actions in office would be a comprehensive review of all theatre commands and inter-service operational structures across the country.

Musa spoke on Friday while addressing officials of the Ministry of Defence during his maiden briefing on assumption of office.

The former Chief of Defence Staff said the review was necessary to strengthen jointness among the services, close operational gaps and ensure strategic alignment between policy and field operations.

The minister also stressed that welfare would be treated as a strategic priority, not an administrative task.

He listed prompt payment of allowances, timely issuance of kits, improved accommodation, quality medical care and support for families of fallen heroes as areas that would receive urgent attention.

Musa said, “We must also confront a critical truth: welfare is not administrative; it is strategic. Morale is a force multiplier. Our personnel must receive their kits on time. Their operational allowances must be paid promptly.

“Accommodation, medical care, and support for injured personnel and families of the fallen must be priorities. Those on the frontlines watch how we treat their colleagues. If they feel abandoned, they cannot give their best. Anyone who risks his or her life for Nigeria deserves nothing but utmost respect.”

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Musa said Nigeria could no longer afford disjointed or siloed security operations, emphasising that effective collaboration among the Army, Navy, Air Force and other security agencies was the only path to lasting success.

According to him, the ministry under his leadership would be guided by three pillars—operational effectiveness, unified action and strategic foresight.

“The threats we face are complex, but our spirit is stronger. No individual and no single service can achieve success alone. We must work as one Nigeria,” Musa added.

Musa promised zero tolerance for corruption, indiscipline and inefficiency within the ministry, noting that professionalism and integrity would define his tenure.

“I expect the highest standards of professionalism, integrity, and urgency. We do not have time to waste. We must respect human rights, avoid mistakes where possible, and when they occur, correct them decisively. I will always welcome candid advice and robust debate, but once a decision is made, we must move as one team.”

He also pledged to deepen the use of technology, intelligence and data-driven planning in defence operations while strengthening partnerships with allies and domestic security agencies.

“I am not here to preside. I am here to lead, to work and to deliver,” he declared.

He assured the service chiefs of his full cooperation and urged the civil service structure of the ministry to uphold diligence in translating military objectives into implementable policies.

Musa added that Nigerians were yearning for peace, security and stability, stressing that children must return to school and farmers to their farms.

“The shedding of innocent blood must end. Our children deserve to return to school. Farmers must return to their farms. Many of these issues require both kinetic and non-kinetic solutions—justice, equity, fairness, and good governance. We will pursue a comprehensive, balanced approach. The Nigerian people are looking to us for results—and we must deliver,” he said.

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Ondo council chair seeks monarchs’ support to fight insecurity

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The Chairman of Akure North Local Government Area of Ondo State, Mr. Johnson Ogunbolude, has appealed to traditional rulers in the council area to support government efforts in combating insecurity, as he distributed official vehicles to the monarchs.

PUNCH Online had earlier reported that suspected armed men attacked four communities in Akure North months ago, killing more than 20 farmers.

The midnight attacks affected Pastor Camp, Sunday Village, Ademekun Camp, and Alajido Camp in the Ala-Elefosan area of the council.

Speaking on Friday at the vehicle distribution ceremony held in Ita Ogbolu, the council headquarters, Ogunbolude said, his administration remained committed to improving security and the welfare of residents.

He explained that providing vehicles for the monarchs would boost security surveillance in their domains.

“This gesture is part of our renewed push to strengthen community security and address past cases of herdsmen attacks. These official vehicles for traditional rulers will enhance surveillance, rapid response, and improve local intelligence gathering within the council area,” he said.

“This initiative aligns with strategic measures to support Governor Lucky Aiyedatiwa’s drive to secure lives and property across Ondo State. Akure North, known for its vast farmlands and dispersed settlements, requires strengthened grassroots security.”

Ogunbolude emphasised that traditional rulers play a critical role in intelligence gathering, peacebuilding, and community vigilance.

According to him, the vehicles will improve monarchs’ mobility, enable closer monitoring of rural communities, and foster stronger collaboration with security agencies for prompt intervention.

The chairman also disclosed that the council would soon unveil additional security measures to further safeguard residents.

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At the event, Ogunbolude distributed N20,000 each to 300 elderly women under the council’s Elderly Welfare Scheme.

“Each of the 300 beneficiaries will receive monthly stipends of N20,000. Today, they collected N60,000 as arrears for two months.

“Protecting vulnerable groups helps sustain community harmony and reduces socio-economic stress linked to insecurity,” he added.

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