FG pays N1.23trn power debt, targets full settlement next year

The Federal Government has paid N1.23 trillion of its historical debts to power generation companies (Gencos) through bonds, with the remaining balance anticipated to be settled next year. This announcement was made by the Minister of Power, Joseph Tegbe, at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos.

Tegbe emphasized the government's dedication to fulfilling the outstanding debts owed to Gencos while preventing the accumulation of new arrears within the power sector. Clearing these debts is a crucial step towards attracting investment into the sector and enhancing electricity supply to residences and businesses nationwide. Tegbe reiterated the Federal Government's commitment to delivering reliable electricity to Nigerians, ensuring that vulnerable groups are adequately protected.

By clearing its obligations to Gencos and utilizing the available generation capacity effectively, the Federal Government is constructing a more robust and investment-ready power sector, in line with the Renewed Hope Agenda, to ensure consistent power for homes, businesses, and industries to foster growth and prosperity.