President Bola Tinubu has approved the gradual payments of power sector debts estimated at over N3.3tn.
The federal government said this is part of the measures to tackle incessant power outages in the country
Similarly, about N1.3tn owed power generating companies by the Federal Government will be paid via cash injections and promissory notes, while about $1.3bn (N1.994tn using the current official closing rate) owed to gas companies will be paid via cash and future royalties.
Already, the Federal Government has commenced payment of the cash part of the N1.3tn debt owed Gencos and concluded plans to settle the second part via promissory notes within a timeframe ranging from two to five years.
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The Minister of Power, Chief Adebayo Adelabu, disclosed this at the 8th Africa Energy Marketplace held on Thursday in Abuja.
The event was themed, “Towards Nigeria ‘s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan.”
The government said it is subsidising electricity by shouldering the gas payment component for power generation.
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But over the years this payment has not been steady, leading to humongous gas debts as well as indebtedness to power generation companies.
Disclosing the solution to the issue, Adelabu stated that Tinubu had directed the Minister of Finance to make immediate payment of N130bn from the Gas Stabilisation Fund, being part of the N1.3tn owed Gencos. The rest will be spread over some time.
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