GenCos’ Debts: FG Pledges To Pay N2Trn Amid Threats To Shutdown Operations
By Sunday Etuka, Abuja
Amid recent threats by the Power Generation Companies (GenCos) to shutdown operations in Nigeria over N4 trillion unpaid invoices, the Federal Government has promised to pay the sum of N2 trillion by the end of this year.
The Minister of Power, Chief Adelabu who announced this on Thursday at Sixth Edition of the 2025 Ministerial Press Briefing held at the National Press Centre, Radio House, Abuja, said the debts were as a result of unfunded subsidies.
TheFact Daily reports that the GenCos are currently owed about N4 trillion. N2 trillion for 2024 and N1.9 trillion in legacy debts.
GenCos’ Board of Trustee Chairman, Col. Sani Bello on Monday in a statement, warned of imminent shutdown if noting was done to offset the debts.
He lamented that besides being owed huge debts, the GenCos are also operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that are currently facing the country.
“No possible solutions, including cash payments, financial instruments, and debts swaps is in sight. The 2025 government budget allocates only N900 billion, raising concerns about its adequacy to cover arrears and future payments,” he lamented.
However, the Minister said “There are plans underway to make these payments. While I would not say it will be paid 100%, we will be paying it back gradually.
“And the mode of payment, we have some projections which will facilitate cash payments. While we are also discussing with the generating companies to give them some guaranteed debt instruments, like the promissory notes, which we will give to them to pay back some of these debts.
“These promissory notes will be liquid enough for them to be taken to the banks for discounting the need in the case of cash injection. So it is a combination of cash payments and promissory notes. And I can tell you that between now and the end of the year, we are going to pay close to N2 trillion out of these debts,” he said.
Earlier, the Minister of Information and National Orientation, Mr Mohammed Idris said, for President Bola Tinubu, electricity is pivotal to the administration’s major goal of industrialising Nigeria for jobs, skills, exports and prosperity.
Mr Idris disclosed that since the beginning of the 2025 series in February, the programme has hosted Ministers representing a total of seven Ministries, providing first-hand facts and figures to Nigerians at home and abroad, on the policies and programmes of the Renewed Hope administration of President Bola Ahmed Tinubu.
He urged the Media report to events accurately and without recourse
to sensationalism, as they owe it to Nigerians to present the news to them with every sense of professionalism and responsibility, with the intention of informing and educating them.
The Minister assured the media would always be powerful stakeholders in nation-building and democratic evolution, adding that this government, would continue to accord them all the necessary respect and support.
