The Federal Government has revealed that plans are underway to settle the N4 trillion debt owed to Power Generation Companies (GenCos) for electricity already supplied to the national grid.
Mr. Bola Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, disclosed this during an interview with journalists in Abuja on Tuesday.
His comments came in response to an appeal by GenCos urging the government and key players in the power sector to clear the outstanding debts.
According to Tunji, the Minister of Power is deeply concerned about the situation and is currently in discussions with the Ministry of Finance on how to address the backlog.
”We expect the Ministry of Finance to take action on this soon.
”We are not unaware of this debt arising from the Federal Government’s commitment on subsidy. Part of the debts is legacy debts, which were on the ground before the minister of power assumed office.
”The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos,” he said.
The Association of Power Generation Companies (APGC) stated that GenCos are currently owed N2 trillion for power supplied in 2024, in addition to N1.9 trillion in legacy debt.
Highlighting the critical challenges facing the sector, the APGC warned that the worsening liquidity crisis is threatening the stability of the entire electricity value chain.
”Besides being owed huge debts, the GenCos were also operating under very harsh monetary and fiscal conditions. ”It is no more news that the GenCos have continued to bear the brunt of the liquidity crisis in the Nigerian Electricity Supply Industry (NESI),” said retired Col. Sani Bello, Chairman, Board of Trustees, APGC.
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