FG planning on offsetting N4trn debt owed GenCos — Power Ministry

By Seun IbiyemiThe Federal Government has disclosed that plans are underway to address the N4 trillion debt owed to electricity generation companies (GenCos) for power already supplied to the national grid.This was confirmed by the Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Mr Bola Tunji, during an interview with journalists in Abuja on Tuesday.Tunji was responding to a recent appeal by the GenCos, who called on the Federal Government and key industry stakeholders to urgently settle outstanding payments exceeding N4 trillion for electricity generated.

He stated that the Minister of Power is deeply concerned about the situation and that discussions are ongoing with the Ministry of Finance regarding how the debt will be resolved.“We are expecting the Ministry of Finance to take necessary action soon,” he said.Tunji noted that the ministry is fully aware of the scale of the debt, much of which stems from the Federal Government’s subsidy commitments.



He clarified that part of the amount represents legacy debts accumulated prior to the current administration.“The minister has spoken about this issue on several occasions, recognising the serious implications these debts pose for the operations of all players in the power sector, especially the GenCos,” he added.In a separate statement, the Association of Power Generation Companies (APGC) confirmed that the GenCos are currently owed N2 trillion for electricity delivered in 2024, in addition to N1.

9 trillion in legacy debt.The group warned that the ongoing liquidity crisis in the Nigerian Electricity Supply Industry (NESI) is now threatening to paralyse the entire power value chain. The APGC also noted that the financial strain is severely limiting the GenCos’ ability to meet their contractual and operational commitments.

According to a statement signed by retired Colonel Sani Bello, Chairman of the Board of Trustees of APGC, the companies are not only grappling with delayed payments but are also operating under difficult fiscal and monetary conditions.“The situation has become dire. The GenCos have long borne the weight of the liquidity shortfall in the electricity sector,” Bello said, cautioning that continued inaction could severely disrupt power generation and the broader energy landscape.

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