FG Pledges Steady Power For All Nigerians, To Clear Remaining Debts Owed To Gencos – Minister

CYRIACUS IZUEKWE

The Federal Government has reaffirmed its commitment to ensuring stable and reliable electricity supply for all Nigerians, while pledging to fully clear the long-standing legacy debts owed to power generation companies, Gencos, in the country.

The assurance was given by the Honourable Minister of Power, Joseph Tegbe, at the Harvard Business School Association of Nigeria, HBSAN, Energy Conference held recently in Lagos.

Speaking at the high-level conference, Tegbe disclosed that the government has already paid about N1.23 trillion out of the accumulated debts owed to Gencos through bond instruments, with a firm plan to clear the outstanding balance by next year.

According to the Minister, the payment is part of a deliberate and sustainable strategy by the Federal Government to restore confidence in the power sector, strengthen liquidity and make the electricity value chain attractive to investors.

He explained that beyond settling the historical debts, the present administration is putting measures in place to ensure that such arrears do not accumulate again in the future. This, he said, is critical to guaranteeing steady power for homes, small businesses and industries across Nigeria.

“The goal is not just to clear the old debts. We are determined to ensure that the system is structured in a way that prevents a build-up of new arrears. A financially healthy power sector is necessary to attract investment and deliver reliable electricity to Nigerians,” Tegbe stated.

The Minister noted that the reforms in the power sector are aligned with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which prioritizes energy security as a catalyst for economic growth, job creation and improved quality of life for citizens.

He added that the government remains committed to protecting vulnerable groups while implementing cost-reflective reforms that will ensure efficiency and accountability across the electricity market.

Tegbe further stressed that the Federal Government is working to fully utilize available generation capacity, improve transmission infrastructure and strengthen distribution networks so that generated power actually gets to end users without bottlenecks.

Industry stakeholders at the HBSAN Energy Conference commended the Federal Government’s approach to tackling the debt overhang, describing the bond payment of N1.23 trillion as a positive signal to investors and operators in the sector.

They noted that legacy debts have been one of the major challenges facing Gencos, affecting their ability to carry out routine maintenance, procure gas for power plants and expand capacity.

With the assurance that the remaining debts will be cleared next year, operators are expected to reinvest in their plants, improve efficiency and increase power supply to the national grid.

The Minister reassured Nigerians that the administration is not relenting in its efforts to fix the power sector, noting that steady electricity remains a top priority for economic productivity.

He said the Federal Government understands the impact of unstable power on small and medium-scale enterprises, particularly in commercial hubs like Lagos, Kano, Onitsha and Aba, where businesses spend huge sums on alternative power sources.

By settling obligations to Gencos and implementing structural reforms, the government is laying the foundation for a stronger, more transparent and investment-ready power sector that will deliver steady and affordable electricity in the long term.

Tegbe urged Nigerians to be patient and support ongoing reforms, adding that the benefits of a stable power sector will soon be felt in improved supply, reduced outages and better service delivery nationwide.