The presidency says internal approvals are underway to resolve the N2 trillion legacy debt owed to electricity generation companies (GenCos) as part of efforts to stabilise the power sector.
Eriye Onagoruwa, representing Olu Verheijen, special adviser to the president on energy, spoke on Monday at the second Nigerian electricity supply industry (NESI) stakeholders meeting of 2025.
Onagoruwa said alternative debt facilities are being explored to offset the debt.
“We are empathetic to what GenCos are facing. We are exploring alternative debt instruments, and I can confirm that both the coordinating minister of the economy and the Debt Management Office are aligned with this effort,” she said.
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“Internal approvals are currently underway.”
Onagoruwa said although timelines cannot be confirmed yet, significant groundwork has been laid.
“I hope by the next NESI meeting, I will be able to share a clear update,” she said.
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On April 14, GenCos said they are currently owed about N4 trillion (N2 trillion for 2024 and N1.9 trillion in legacy debts) by the federal government and stakeholders for electricity generated.
The GenCos asked the federal government and key stakeholders to urgently address the issue, saying it was threatening the continued operation of their power generation plants.
The next day, Bola Tunji, spokesperson to Adebayo Adelabu, the minister of power, said the federal government has plans to clear the N4 trillion debt owed to the GenCos.
On May 5, Adebayo Adelabu, minister of power, said the federal government may borrow to settle part of the N4 trillion debt owed to power generation companies (GenCos).
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