President Bola Tinubu has approved the gradual payment of power sector debts estimated at over N3.3trn as part of measures to tackle incessant power outages in the country.
The Minister of Power, Chief Adebayo Adelabu, disclosed this at the 8th Africa Energy Marketplace held in Abuja.
This means that approximately N1.3trn owed to power-generating companies by the federal government will be paid through cash injections and promissory notes, while about $1.3bn owed to gas companies will be settled via cash and future royalties.
Chief Adelabu, while outlining the solution to the power sector’s issues, stated that President Tinubu had directed the Minister of Finance to make an immediate payment of N130bn from the gas stabilisation fund, which is part of the N1.3rtn owed to GENCOs.
The remaining amount is expected to be paid over a period of time.
