The Federal Government has paid N1.23 trillion in outstanding debts owed to electricity generation companies (Gencos) and plans to settle the remaining balance in 2027.
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Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos.
He said the government was working to clear its outstanding obligations to power producers while preventing fresh debts from accumulating across the electricity sector.
According to Tegbe, settling the legacy debts is critical to restoring investors’ confidence and improving electricity supply to households and businesses.
He explained that the government’s plan goes beyond clearing existing liabilities, as it also seeks to establish a sustainable financial framework for the power sector.
The minister added that increasing electricity generation and ensuring the effective use of available capacity would help strengthen the industry and support economic growth.
Tegbe reaffirmed the government’s commitment to providing reliable electricity while protecting vulnerable Nigerians from the impact of reforms in the sector.
He said the administration was working towards a system in which households, businesses and industries could rely on a more stable power supply.
The minister noted that the efforts were in line with President Bola Tinubu’s Renewed Hope Agenda, which aims to attract investment, improve infrastructure and promote economic prosperity.
However, preventing fresh debts from accumulating will remain a major challenge as the government works towards achieving lasting financial stability in the electricity sector.
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