The Federal Government (FG) has initiated steps to offset ₦2 trillion from the over ₦4 trillion debt owed to electricity generation companies for power supplied to the national grid.
This was disclosed during a Nigerian Electricity Supply Industry (NESI) stakeholders’ forum hosted by the Nigerian Electricity Regulatory Commission (NERC).
At the forum, a representative of the President’s Special Adviser on Energy, Olu Verheijen, addressed participants.
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Verheijen, through her representative Eriye Onagoruwa, said the planned payment, expected before the end of the next quarter, forms part of broader efforts to bring stability to Nigeria’s struggling electricity sector.
She noted that although budgetary limitations persist, the government is considering alternative financial instruments to manage the debt burden.
The Coordinating Minister of the Economy, Wale Edun, alongside the Debt Management Office (DMO) reportedly backed the initiative, with necessary internal processes currently in progress.
“We recognise the financial stress GenCos are under,” Onagoruwa said, acknowledging that while a precise timeline cannot yet be provided, considerable progress has been made.
“Hopefully, by the time we reconvene for the next NESI meeting, we’ll have firmer updates.”
This move comes on the heels of a recent alert issued by generation companies (GenCos), warning the federal government that the escalating debt, now exceeding ₦4 trillion—is endangering their ability to continue operations.
The outstanding amount includes ₦2 trillion accrued in 2024 and approximately ₦1.9 trillion in long-standing arrears.
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Back in February, Power Minister Adebayo Adelabu confirmed that the government’s total debt to GenCos and DisCos had surpassed ₦4 trillion.
He warned that the financial pressure was impeding the sector’s capacity to function effectively.
However, in April, Adelabu pledged to resolve the ongoing debt issues hampering the electricity industry.
