FG Pays N1.23tn of N3.3tn GenCos Debt, Says Power Minister
The Federal Government has paid N1.23 trillion out of the N3.3 trillion debt owed to electricity
generation companies (GenCos), Minister of Power Joseph Tegbe has disclosed.
Tegbe made the disclosure while briefing State House correspondents shortly after Wednesday’s
Federal Executive Council meeting presided over by President Bola Tinubu at the Council Chamber of the
State House in Abuja.
He said the payment formed part of ongoing efforts to resolve liquidity and debt challenges in the
power sector, which had constrained the supply of feedstock gas to generation companies.
“So far, we have been able to pay N1.23tn out of the N3.3tn debt owed to the GenCos, which has been
considered a challenge in respect of supply of feedstock gas,” Tegbe stated.
Beyond the debt payments, the minister said the government was also working to optimise existing
assets in the sector and build long-term resilience into the national grid through targeted investment in
transmission infrastructure.
He added that the government planned to expand transmission capacity from the current 5,000
megawatts to approximately 19,000 megawatts.
“We plan to build resilience into the grid by building out and investing in grid expansion. The intention is
to upgrade transmission capacity from 5,000 megawatts today to about 19,000 megawatts,” he said.
The N1.23 trillion payment was raised through bond issuances under the Presidential Power Sector Debt
Reduction Programme, which aims to settle verified legacy obligations accumulated in the electricity
market.
The minister noted that the payments were intended to improve liquidity for GenCos, support gas
supply and plant maintenance, and help restore confidence across the power value chain.
By Oyinkansola Shittu.
