LAGOS, NIGERIA — The Federal Government has reiterated its commitment to improving electricity supply across Nigeria, assuring Nigerians that outstanding legacy debts owed to power generation companies (GenCos) will be fully settled, with the remaining balance expected to be cleared in 2027.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, where he stated that approximately ₦1.23 trillion in legacy debts has already been paid through bonds, while efforts are ongoing to settle the outstanding balance.
According to the minister, the government’s commitment extends beyond clearing inherited financial obligations to establishing a sustainable payment framework that will prevent the recurrence of such debts.
He explained that addressing the financial challenges confronting the power sector is essential to restoring investor confidence, encouraging fresh investment and improving electricity delivery to homes, businesses and industries nationwide.
The Federal Government also reaffirmed its commitment to protecting vulnerable Nigerians as reforms in the electricity sector continue, stressing the importance of balancing financial sustainability with the need to safeguard consumers who may be adversely affected.
The initiative forms part of the electricity reform priorities of President Bola Ahmed Tinubu’s administration under the Renewed Hope Agenda, with emphasis on strengthening the power sector, improving operational efficiency and making better use of available electricity generation capacity.
Industry stakeholders have continued to identify financial liquidity, infrastructure constraints and the need for sustained investment as critical issues affecting electricity supply in Nigeria. The government’s proposed settlement of outstanding GenCo debts is intended to address one of the sector’s longstanding financial challenges.
However, the ultimate test of these commitments will be their impact on electricity availability, the reliability of supply to consumers and the ability of power-sector operators to sustain their operations without accumulating further arrears.
For millions of Nigerian households, small businesses and industries, improved electricity supply remains a major national priority, with expectations that the government’s commitments will translate into tangible and lasting improvements.
JAMISI NEWSLINE News. Truth. Public Interest.
