The federal government has taken a significant step towards resolving the liquidity challenges in Nigeria’s power sector by offsetting N205 billion from the N1.3 trillion debt owed to Generation Companies (Gencos).
This development, which was announced by the Minister of Power, Chief Adebayo Adelabu, during an oversight visit by the House of Representatives Committee on Power in Abuja, signals a concerted effort by the Bola Tinubu administration to improve electricity supply across the country.
Adelabu emphasized that the recent improvement in power supply was no coincidence but a direct result of the government’s deliberate actions. He highlighted that the payment made to the Gencos was part of a broader strategy to ensure the sustainability and efficiency of the power sector.
The minister acknowledged that while the government is still indebted to these companies, the gradual repayment is fostering a more positive outlook among the power producers.
“The government has begun to address the market’s liquidity issues by starting to pay the debts owed to these companies. Just about three weeks ago, out of the approximately N1.3 trillion we owe the Gencos, we were able to pay them N205 billion,” Adelabu said. He further urged the House committee members to continue advocating for the prompt payment of the remaining debts to ensure that the progress made in the sector is sustained.
The minister’s call for legislative support underscores the critical role that coordinated efforts between the executive and legislative branches play in addressing the longstanding issues within Nigeria’s power sector.
As the government continues to chip away at its debt, stakeholders in the sector are hopeful that these measures will lead to more consistent and reliable electricity supply for the nation’s citizens.
