The Federal Government has issued bonds worth N1.23 trillion to settle a significant portion of its historical debts owed to power generation companies (Gencos), with the remaining balance scheduled for complete liquidation next year.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos.
He said the government was committed to settling the outstanding obligations to Gencos while preventing fresh arrears from accumulating in the power sector.
Tegbe said clearing the debts was part of efforts to attract investment into the sector and improve electricity supply to homes and businesses across the country.
He reaffirmed the Federal Government’s commitment to providing reliable electricity to Nigerians while ensuring that vulnerable groups were adequately protected.
He said by clearing its obligations to Gencos and making full use of available generation capacity, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda, so that homes, businesses and industries can count on steady power to drive growth and prosperity.
What You Should Know
The Federal Government has settled N1.23 trillion of legacy debts owed to power generation companies (Gencos) using bonds, with the final balance expected to be cleared next year. This initiative aims to restore financial stability to Nigeria’s power sector, attract fresh investments, and ensure a more stable electricity supply for homes and businesses.
- Positive Impact: Clearing these debts helps build an investment-friendly power sector under the Renewed Hope Agenda, which can lead to more reliable electricity generation and steady power for industries and households.
- Potential Concerns: While the bond payments relieve Gencos of past financial burdens, citizens will closely monitor whether this fiscal intervention actually translates to tangible improvements in daily power supply and stable electricity tariffs.
