The Federal Government has reaffirmed its commitment to delivering reliable electricity to every Nigerian, announcing that it will complete payment of legacy debts owed to power generation companies (Gencos) while ensuring vulnerable groups are adequately protected.
Minister Reveals N1.23 Trillion Already Paid Through Bonds
The Honourable Minister of Power, Joseph Tegbe, made this known at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos. He revealed that approximately N1.23 trillion of the backlog has been paid so far through bonds, with the balance scheduled to be cleared next year.
According to Tegbe, the government's goal extends beyond settling old debts. The administration is determined to ensure such arrears do not build up again, aiming to attract investment and deliver reliable power to homes and businesses across the country.
Commitment Reflects Tinubu's Renewed Hope Agenda
The commitment reflects the determination of the administration of President Bola Ahmed Tinubu to deliver a stable and reliable electricity supply for all Nigerians. By clearing its obligations to Gencos and making full use of available generation capacity, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda.
This move is expected to enable homes, businesses, and industries to count on steady power to drive growth and prosperity. The minister's remarks underscore a broader strategy to prevent future arrears and stabilize the power sector's financial framework.
Impact on Investment and Power Sector Stability
The payment of legacy debts is seen as a critical step toward making the Nigerian power sector more attractive to investors. By ensuring that Gencos receive their due payments, the government aims to encourage continued investment in generation capacity, ultimately improving electricity supply nationwide.
The Federal Government's commitment also includes protecting vulnerable groups, ensuring that the transition to a more reliable power sector does not disproportionately affect those with limited resources. The full clearance of the remaining debt is expected to further stabilize the sector, paving the way for sustained improvements in electricity delivery across Nigeria.
