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FG to pay N2trn of N4trn GenCo’s debt before year end

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FG to pay N2trn of N4trn GenCo’s debt before year end
Written by Areatatafo

FG to pay N2trn of N4trn GenCo’s debt before year end


By Soni Daniel, Editor, Northern Region

In a bid to prevent the shutdown of power production plants across the country, the federal government is to pay off at least N2 trillion out of the N4 trillion that it is said to be owing generation companies (GenCos) in the country.

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The generation firms, which are mostly privately owned, had threatened to shut down power generation until the huge debts were settled.

But the Minister of Power, Adebayo Adelabu, who spoke at the sixth edition of the 2025 Ministerial Press Briefing Series held at the National Press Centre, Abuja, on Thursday, assured that at least N2 trillion of the outstanding debt would be paid before the end of the year.

Chief Adelabu explained that the debt, which was inherited from the previous administration, would be paid in cash and through guaranteed promissory notes.

The minister also defended the increase in electricity tariff, saying that it was not meant to punish Nigerians in favour of electricity distribution companies but to improve service and keep the system running.

Adelabu also stated that the subsidy being paid by the federal government for electricity consumers was not being made up but borne out of previous years and that of 2024.

“I want to state clearly that the subsidy that we are seeing is not made up but was carried over from previous years and the amount incurred in year 2024,” the minister said.

“We are not in any way working to favour the electricity companies but doing our best to ensure that even the poor can also enjoy steady power at affordable rate and keep the system working,” Chief Adelabu said.

The minister encouraged electricity consumers to promptly report any electricity distribution company, which does not supply enough power under the stipulated bands but claim payment for lower supply, for immediate punishment.

Adelabu promised that despite the challenges confronting the ministry, the major focus is to improve generation and increase energy access, pointing out that on March 25, 2025 Nigeria reached a remarkable generation peak of 6,003 megawatts, marking the first time that record had been reached in Nigeria’s history.

The minister said, “This achievement was followed by a peak generation evacuation of 5,801.44 megawatts on 4 March 2025, which also saw an impressive daily energy output of 128,370.75 megawatt-hours on that day.

“The average daily power generated and distributed in the past quarter of 2025 was 5,700 MW compared with the 4,100 MW achieved in the third quarter of 2023. This indicates a growth of 1,600 MW, nearly 40% growth since we assumed office at the ministry. Given that it took the country almost 40 years to achieve an incremental 2,000 MW average energy, we accomplished this in less than two years.

“Through targeted interventions by the new management of the Niger Delta Power Holding Company, we have been able to restore 232.5 megawatts of previously idle capacity from our Omotosho and Benin plants.

“Additionally, NDPHC has carried out the construction, improvement, and installation of 14 Transmission lines across the country, as well as the rehabilitation of the existing TCN 2 x 132kv line bay extension at TCN Papalanto substation (lot 14) Papalanto Ogun state and 330KV DC AFAM – Ikot Ekpene Transmission Line 65KM (LOT 4A).

“Our journey is just beginning, but we are proud of the foundation laid in the first 100 days of 2025. These achievements are not just statistics—they represent new jobs, improved livelihoods, and better prospects for our economy and citizens, but our work has only begun.

“As we continue with our mandate, the Federal Ministry of Power remains committed to a people-centred, reform-driven, and results-based approach to transforming Nigeria’s power sector,” the minister boasted.

Earlier, the Minister of Information and National Orientation, Alhaji Mohammed Idris, had The Minister of Information and National Orientation, Mohammed Idris, had reiterated the unwavering commitment of the President Bola Ahmed Tinubu administration to the modernisation and transformation of Nigeria’s media and broadcasting landscape.

The minister disclosed that he had just returned from the prestigious National Association of Broadcasters (NAB) Conference and Workshop in Las Vegas, United States, which brought together global stakeholders in broadcasting and media technology to explore cutting-edge innovations and emerging trends shaping the future of the industry.

Idris said he held a series of high-level engagements aimed at forging strategic partnerships to enhance the technical and technological capacity of Nigeria’s broadcasting sector.

He said, “I have shared these to reaffirm the commitment of the President Bola Ahmed Tinubu administration towards the lasting transformation of Nigeria’s media landscape.

“It is that unwavering commitment that is equally fueling interventions like this Ministerial Press Briefing Series, as well as our Town Hall Meetings, which we will take to every part of the country in due course,” the minister said.

The post FG to pay N2trn of N4trn GenCo’s debt before year end appeared first on Vanguard News.

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