The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos
The federal government has stated that measures were in the works to settle the Power Generation Companies’ (GenCos) N4 trillion debt for power generated.
While speaking with the News Agency of Nigeria (NAN) in Abuja on Tuesday, Mr. Bola Tunji—Special Adviser, Strategic Communications and Media Relations, to the Minister of Power—made this information public.
This follows after the GenCos made a statement pleading with the federal government and power sector stakeholders to pay them back for the electricity they produced.
Tunji said, “We expect the Ministry of Finance to take action on this soon.
“We are not unaware of this debt arising from the Federal Government’s commitment on subsidy. Part of the debts is legacy debts, which were on the ground before the Minister of Power assumed office.
READ: GenCos Threaten Total Shutdown Due to N4trn Debt
“The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos.”
IREPORT247NEW reports that GenCos are requesting that immediate and expedited action be taken to prevent national security challenges that may result from the failure of the GenCos to sustain steady electricity generation for Nigerians.
The electricity generation companies (GenCos) in Nigeria are on the verge of completely shutting down their operations as a result of an outstanding debt of roughly ₦4 trillion owed by the Federal Government.
These GenCos have stated that this debt is currently posing a threat to their operating operations. As a result of the debt, which includes both historical obligations and outstanding subsidies for the year 2024, the power sector is experiencing a significant reduction in its capacity to maximize its efficiency.
“The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvements in electricity supply,” they said, urging the establishment of payment plans to pay off all outstanding GenCos invoices.