The Minister of Power, Adebayo Adelabu, has announced plans to prevent a shutdown of the electricity sector over N4 trillion debts owed to power generation companies.
The federal government will clear N2 trillion of the debt before the year ends, with payments made through budgetary allocation and promissory notes.
Almost all of the debt is inherited, while about half of it came from 2024, according to Adelabu.
The government is working to defray the debt gradually, although Adelabu is uncertain about clearing the full amount.
Adelabu made this disclosure at the sixth Ministerial Press Briefing in Abuja, following a threat by GenCos to shut down the country’s power generation over the N4 trillion debt owed by the federal government.
The Chairman of the Board of Trustees of the GenCos, Rtd. Colonel Sani Bello, had threatened to shut down the power sector due to the debt.