FG Pledges Immediate Action to Settle N4 Trillion Power Sector Debt
The Federal Government has vowed to urgently address the N4 trillion debt crippling Nigeria’s power generation sector, following high-stakes talks between Power Minister Adebayo Adelabu and Chairmen of Generating Companies of Nigeria (GenCos) in Abuja.
The move aims to avert an imminent collapse of the power infrastructure in the country.
According to a statement by the Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Bolaji Tunji, the Minister assured GenCos executives that the government would prioritize immediate payment of a significant amount out of the N4b debt while the balance would be defray through other debt instruments.
The statement added that this would be proposed in a meeting being planned between President Bola Ahmed Tinubu and GenCos’ leadership.
He assured of the payment of the outstanding balance within six months through financial instruments such as promissory notes adding that the government is committed to resolving this debt to stabilize the sector and prevent further crisis.
Adelabu stated that President Bola Tinubu would meet with GenCos leadership to fast-track the process.
The Minister acknowledged the government’s role in the sector’s struggles, pledging to not only clear the debt but also implement reforms to ease operational bottlenecks just as he emphasized the need for full liberalization of the power sector.