Nigerian government vows to settle N3 trillion inherited debt in power sector

The Minister of Power, Mr Adebayo Adelabu, has announced that the Federal Government is committed to offset more than N3 trillion of debt it inherited in the power sector.

Adelabu said this in Abuja on Wednesday when he briefed reporters.

He disclosed that the Federal Government intends to address the outstanding sectoral debts owed to gas supply and power generation companies. The plan involves a combination of cash payments and guaranteed debt instruments to settle these obligations.

“Today, we owe the Power Generating Companies (GenCos) a total of N1.3 trillion, of which 60 per cent is owed to gas suppliers.

”We had a legacy debt of 1.3 billion dollars prior to 2014 to gas supplier companies, and at today’s rate, that is close to two trillion Naira.

“If you add the two trillion Naira legacy debt to N1.3 trillion owed the GenCos, we have an inherited debt of more than three trillion naira in the power sector.

“How will the sector move forward? Nigerians deserve the right to know, and we are working underground to resolve these issues,” he said.

Nigeria has been facing epileptic electricity problems from the national grid despite being a significant producer of oil and gas in the world.

With less than 50% of Nigeria’s population having access to consistent power from the national grid, many households and businesses rely on alternative sources such as generators and inverters to meet their electricity needs.

However, the recent removal of fuel subsidies by the government last May has led to increased costs for these alternative power sources, further adding to the woes of consumers.