The Nigerian government has taken a significant step toward addressing the liquidity issues in the power sector by allocating N205 billion from the N1.3 trillion debt owed to Generation Companies (Gencos).
This move was announced by the Minister of Power, Adebayo Adelabu, following an oversight visit by the House of Representatives Committee on Power.
Minister Adelabu noted that the improvement in electricity supply in certain parts of the country is a direct result of proactive measures taken by President Bola Tinubu’s administration. He also highlighted the government’s ongoing efforts to pay off its debts to Gencos, emphasizing the importance of continued financial support.
“In terms of markets and liquidity, the government is also owing these companies, but they have started paying them little by little. Just about three weeks ago, out of the about N1.3 trillion we owe the Generation Companies (Gencos), we were able to pay them N205 billion. And they are also happy,” Adelabu stated.
The minister further pointed out the significant discrepancy in metering, revealing that out of over 12 million electricity customers nationwide, only slightly more than five million have been metered.
Adelabu urged the House committee members to help pressurize the executive to maintain the momentum in settling the outstanding debts to ensure a stable power supply across the country.
