The Federal Government has commenced the process of settling ₦2 trillion out of the over ₦4 trillion legacy debt owed to electricity generation companies (GenCos) for power supplied to the national grid.
This was disclosed during a recent Nigerian Electricity Supply Industry (NESI) stakeholder meeting organized by the Nigerian Electricity Regulatory Commission (NERC).
Olu Verheijen, Special Adviser to the President on Energy, represented by Eriye Onagoruwa, stated that the payments are expected to be made before the end of the next quarter as part of ongoing efforts to stabilize the nation’s power sector.
She noted that due to fiscal limitations, alternative debt instruments are being considered. The Debt Management Office (DMO) and Coordinating Minister of the Economy, Wale Edun, are said to be supporting the move, with internal approvals already underway.
“We’re empathetic to what GenCos are facing,” Verheijen stated. “While we can’t yet confirm specific timelines, we’ve made significant progress and hope to share clearer updates by the next NESI meeting.”
The announcement follows recent warnings from GenCos, who say the ₦4 trillion debt, including ₦2 trillion incurred in 2024 and ₦1.9 trillion in legacy debt, is crippling operations and threatening electricity supply across the country.
In February, Power Minister Adebayo Adelabu acknowledged the massive debt burden and pledged to resolve the crisis. By April, Adelabu reaffirmed the government’s commitment to clearing the debts, citing their impact on energy production and national development.
