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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.

See also  FG begins N4tn GenCos debt repayment with bonds

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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Sand depletion threatens construction, food security — LASG

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The Lagos State Government has raised alarm over the growing sand depletion deposits across the state, warning that unchecked dredging activities could worsen construction costs, damage aquatic ecosystems and threaten food security.

“We need proper data. We need to know how many people are dredging, how much sand is being dredged daily, and what is left within those areas,” the Commissioner for Waterfront Infrastructure Development, Dayo Bush Alebiosu, said during the ministry’s two-year scorecard presentation at the annual ministerial press briefing held at the Bagauda Kaltho Press Centre.

Alebiosu said increasing demand for sand used in reclamation and infrastructure projects, particularly within the Lekki-Ajah corridor, had intensified pressure on available deposits across Lagos.

According to him, developers handling reclamation projects in Lekki and Ajah now source sand from communities as far as Ikorodu, pumping materials across distances of between 10km and 12km because deposits in closer locations are becoming exhausted.

He said the development confirmed fears that sand resources around Ajah were gradually running out, stressing that the state government has become more cautious in issuing dredging licences and permits.

The commissioner warned that the continued depletion of sand reserves could significantly increase the cost of construction and infrastructure delivery in Lagos, thereby placing additional pressure on housing and urban development.

He also linked indiscriminate dredging to threats to food security, especially in fishing communities that depend on healthy aquatic ecosystems for their livelihoods.

“It is putting food security at risk. We are encouraging people to consume more protein, such as fish, but whenever dredging disturbs aquatic life, fishermen are forced to work harder, and naturally, the cost of fish goes up,” he said.

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According to Alebiosu, aggressive dredging disrupts aquatic microorganisms and marine habitats, forcing fishermen to travel farther and spend more resources before making catches.

The commissioner further disclosed that host communities are increasingly facing infrastructural damage caused by heavy-duty dredging equipment and commercial activities associated with sand excavation.

He cited Ibese as one of the affected communities where roads and public infrastructure have reportedly deteriorated due to dredging operations.

Alebiosu said the Ministry of Waterfront Infrastructure Development remains the agency legally empowered to regulate dredging and sand dealing activities in Lagos State.

He added that the ministry collaborates with relevant agencies, including the Ministry of Environment and Physical Planning, as well as host communities, to tackle illegal dredging through monitoring, enforcement and whistleblowing mechanisms.

The commissioner also urged residents to support enforcement efforts by reporting illegal dredging activities, noting that some operators deliberately conceal their activities to evade detection.

“We cannot continue blaming foreigners alone. We must ask ourselves how they got there in the first place. They definitely have the connivance of some locals,” he said.

The Lagos State Government reaffirmed its commitment to stricter regulation of dredging activities to curb environmental degradation, protect waterfront communities and ensure the sustainable use of natural resources across the state.

A statement released later on Thursday by the Director, Public Affairs of the Ministry of Waterfront Infrastructure Development, Morenikeji Akodu, noted that commissioner warned that the increasing desperation for sand across Lagos was already exposing the dangers of over-exploitation of waterways and coastal resources.

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He also warned that the development pointed to mounting pressure on available sand deposits across the state and underscored the need for stricter regulation and proper monitoring of dredging activities.

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Flood alert: Kaduna steps up awareness as rains loom

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The Kaduna State Government has intensified public awareness and emergency preparedness efforts following forecasts by the Nigerian Meteorological Agency that the state may experience flooding during the 2026 rainy season.

The government said the move followed the release of the 2026 Seasonal Climate Prediction report by NiMet, which identified Kaduna among states likely to witness above-normal rainfall this year.

In a statement issued on Thursday, the Commissioner for Information and Culture, Ahmed Maiyaki, said the government had commenced coordinated sensitisation and disaster response initiatives to minimise the impact of flooding and protect lives and property.

According to the statement, rainfall in Kaduna State is expected to commence between May 19 and June 10, 2026, while cessation is projected between October 5 and October 21, 2026.

The statement further noted that the forecast indicated the possibility of a severe 21-day dry spell between June and August, a development that could worsen flooding and other environmental challenges.

“The Kaduna State Government is taking this forecast seriously. Early preparedness and public cooperation remain critical to reducing the impact of flooding on our communities,” Maiyaki stated.

He disclosed that the Ministry of Information and Culture, in collaboration with the Kaduna State Emergency Management Agency, had launched a statewide sensitisation campaign aimed at educating residents on flood prevention, mitigation and safety measures.

Maiyaki urged residents to clear drainage around their homes and business premises and desist from indiscriminate dumping of refuse into waterways.

He also advised residents in flood-prone communities to adopt preventive measures, including the use of sandbags and other local flood control measures.

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The commissioner appealed to traditional rulers, religious leaders, media organisations and civil society groups to support government efforts by promoting environmental sanitation and disseminating verified information to the public.

“The safety of citizens remains a top priority for the Kaduna State Government. We will continue to work with all relevant agencies and communities to ensure timely information dissemination and effective disaster risk reduction measures throughout the rainy season,” he added.

The statement further disclosed that KADSEMA had commenced vulnerability assessments in flood-prone communities, strengthened emergency response coordination and begun pre-positioning rescue materials and personnel in high-risk areas.

Flooding has remained a recurring challenge in several parts of Kaduna State and across the country during the rainy season.

In recent years, heavy rainfall has led to the destruction of houses, farmlands and public infrastructure in several communities, while hundreds of residents were displaced.

In 2024 and 2025, parts of Kaduna metropolis, Kafanchan, Zaria and some riverine communities witnessed severe flooding following torrential rains and poor drainage systems, prompting repeated warnings from emergency management agencies.

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Akwa Ibom doctors threaten N1bn lawsuit against EFCC over hospital raid

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The Nigerian Medical Association, Akwa Ibom State chapter, has said it will institute a N1bn legal action against the Economic and Financial Crimes Commission over alleged assault on one of its members, Professor Eyo Ekpe, during a raid at the University of Uyo Teaching Hospital, Akwa Ibom State.

The association on Wednesday said the planned suit followed what it described as physical, emotional, professional and institutional damages suffered during the EFCC operation at the hospital on Tuesday.

It was gathered that EFCC operatives had stormed the UUTH while investigating a fraud case involving a suspect, a move the commission said was to verify a medical report submitted by the suspect.

The EFCC, in its explanation, said its operatives later visited the Chief Medical Director of the hospital “as a last resort to make further enquiries,” but claimed they were met with resistance, adding that the team eventually withdrew without disrupting hospital activities.

However, the NMA said the operation led to the alleged assault of Professor Ekpe, a cardiothoracic surgeon at the hospital.

Addressing a press conference in Uyo, the state NMA Chairman, Professor Aniekan Peter, said the decision to approach the court was part of resolutions reached at an emergency meeting of the association.

He said, “We observed that Prof Eyo Ekpe was apprehended within the premises of UUTH by masked EFCC operatives who physically assaulted him, beat him to the point of bleeding, handcuffed him alongside other doctors and hospital staff who attempted to intervene.

He also alleged that the NMA chairman was affected during the incident, saying, “Professor Peter, Akwa Ibom NMA chairman, was shoved and exposed to teargas when he approached the scene seeking clarification from the operatives.”

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The association described the hospital environment as “sacred” and said it should not be subjected to violent operations by security agencies.

It added, “We shall institute a legal action against the EFCC with a demand for damages in the sum of N1bn for the physical, emotional, professional and institutional damages caused.”

The communique, read by Assistant Secretary of the association, Dr Unyime Ndoh, and endorsed by Professor Peter and Secretary Dr Ighorodje Edesiri, said the association would not return to work unless its demands were met.

The demands include an apology to the affected doctors and identification and prosecution of those involved in the operation.

The NMA also said there was no prior formal invitation to Professor Ekpe or its leadership before the incident, describing the raid as “barbaric, degrading, inhuman and a gross violation of the sanctity of the hospital environment.”

The association further said it would not provide medical services to EFCC officials or their relatives until its demands are addressed.

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