FG clears N205bn of N1.3tn debt to power generation companies
The federal government of Nigeria has announced that it had offset N205 billion from the N1.3 trillion debt owed to power Generation Companies (Gencos) to raise the level of liquidity in the power sector.
The government also stated that the noticeable improvement in electricity supply in parts of the country was not an accident, but due to recent efforts of the Bola Tinubu administration.
Speaking in Abuja, during an oversight visit by the House of Representatives Committee on Power, Minister of Power, Chief Adebayo Adelabu, explained that the lawmakers must continue to pile pressure on the executive to ensure that debts owed players in the sector were paid.
Adelabu said, “In terms of markets and liquidity, government is also owing these companies, but they have started paying them little by little. Just about three weeks ago, out of the about N1.3 trillion we are owing the Generation Companies (Gencos), we were able to pay them N205 billion. And they are also happy.
“But I will plead with the members of the House committee to help us mount pressure on the executive to continue to pay these people.”
The minister explained that with the current economic hardship in the country, including fuel scarcity, Nigerians must not be made to face another national blackout which would further reduce their quality of life.
He stated that Nigeria needed to renew the infrastructure in the power sector, and rejig the current tariff policy, maintaining that all the segments of the power sector need to be worked on.
According to him, “A lot of the towers are falling. The substations are dilapidated with very old transformers, some of them were installed in the 60s. We have not been able to replace them. The same thing with distribution infrastructure. The substations at the distribution level are also not working properly.”
Describing the metering gap as wide, Adelabu stated that out of over 12 million electricity customers nationwide.
