FG to Clear Outstanding N1.23trn Power Debts to Gencos Next Year

By Adedapo Adesanya

The federal government has reaffirmed its commitment to providing steady electricity to Nigerians, saying it will clear outstanding legacy debts owed to power generation companies (Gencos) next year.

The Minister of Power, Mr Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, noting that about N1.23 trillion of the legacy debt backlog had been paid through bonds, while the balance would be settled next year.

He said the government’s efforts go beyond clearing the outstanding obligations, adding that measures would be taken to prevent the accumulation of new debts in the power sector.

According to Mr Tegbe, addressing the legacy debts and preventing further arrears are necessary to attract investment into the sector and improve electricity supply to homes and businesses across the country.

The minister also reaffirmed the government’s commitment to protecting vulnerable groups as it works towards ensuring a stable and reliable electricity supply for Nigerians.

The government said it would leverage available power generation capacity and meet its financial obligations to strengthen the electricity sector and support economic growth.

The Federal Executive Council (FEC) approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with Nigerian Bulk Electricity Trading Plc (NBET) designated as the sponsoring institution responsible for coordinating the settlement of verified legacy obligations across the electricity industry.

So far, two bond issuances making up the N1.23 trillion Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme have been issued.