FG promises to clear N4tn debt owed GenCos

FG promises to clear N4tn debt owed GenCos

The Federal Government of Nigeria has owned up to owing the Power Generation Companies (GenCos) for electricity generated the whopping debt of N4 trillion.

It also said plans were already underway to offset the hefty debt.

Mr Bola Tunji, Special Adviser, Strategic Communications and Media Relations, to the Minister of Power made this known in an interview with the News Agency of Nigeria (NAN) in Abuja on Tuesday.

Tunji was reacting to a statement by the GenCos appealing to the Federal Government and stakeholders in the power sector to settle the more than N4 trillion debt owed them for electricity generated.

According to him, the Minister of Power is very much concerned and the issue is being discussed with the ministry of finance on how the debt would be paid.

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“We expect the Ministry of Finance to take action on this soon.

“We are not unaware of this debt arising from the Federal Government’s commitment on subsidy. Part of the debts is legacy debts, which were on the ground before the minister of power assumed office.

“The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos ,” he said.

The News Agency of Nigeria (NAN) reports that the Association of Power Generation Companies (APGC), in a statement said that GenCos were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.

In the statement issued by retired Col Sani Bello, Chairman Board of Trustees of APGC, the GenCos also noted that the cash liquidity was currently threatening the continued operation of their power generating plants.

“Besides being owed huge debts, the GenCos were also operating under very harsh monetary and fiscal conditions.

“It is no more news that the GenCos have continued to bear the brunt of the liquidity crisis in the Nigerian Electricity Supply Industry (NESI),” he said.

 

FG promises to clear N4tn debt owed GenCos