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Tinubu okays payment of N2tn legacy debt to GenCos

Tinubu okays payment of N2tn legacy debt to GenCos

President Bola Ahmed Tinubu has approved N2 trillion as legacy debt for the generation companies.

This follows a threat by gas companies to declare force majeure in their operations.

Minister of Power, Adebayo Adelabu, disclosed this on Saturday at the BusinessDay Energy Conference in Lagos, as reported by The Sun.

According to Adebayo, the funds will defray legacy debts to gas companies to allow efficient gas supply to the power sector going forward.

The minister added that the federal Government would commence the World Bank Distributed Access through Renewable Energy Scale-up, DARES, $750 million facility to increase access to electricity for 2.5 million people through the deployment of solar home systems and mini grids to households, Micro, Small and Medium Enterprises, MSMEs, throughout Nigeria, educational and health facilities.

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Adelabu said, “This is in addition to the recently concluded $550 million Nigeria Electrification Plan which has bridged the energy access deficit by providing electricity to over 1.1 million households, MSMEs, educational and healthcare facilities in unserved and underserved rural communities.

“We believe that the global shift towards renewable energy is not just an environmental necessity but also an economic one.

“Nigeria is blessed with abundant renewable resources, and we aim to continue tapping into these renewable sources to diversify our energy mix, reduce our carbon footprint, and ensure energy security.

“We have also secured a presidential approval to defray legacy debts to gas companies to allow efficient gas supply to the power sector going forward and a payment mechanism to address Generation Companies debts to ensure necessary maintenance are resolved and evacuation capacity optimisation.

“With this effort, we aim to not only increase our generation capacity but also improve the efficiency and reliability of our power supply.”

Tinubu okays payment of N2tn legacy debt to GenCos

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