By Yahaya Umar
Federal government is looking to pay 50% of the N4 trillion legacy debts owed for electricity generated and supplied to the national grid in the third quarter of 2025.
A representative of the Special Adviser to the President on Energy, Ms Olu Verheijen, revealed this at a Nigerian Electricity Supply Industry ,NESI, stakeholders meeting organised by the Nigerian Electricity Regulatory Commission ,NERC.
Recall that in April, the federal government via the Minister of Power, Mr Adebayo Adelabu, said President Bola Tinubu was committed to paying the N2 trillion to avoid disruption to Nigeria’s electricity operations.
According to her, the debts to be settled before the end of the next quarter are part of efforts to stabilise Nigeria’s power sector, explaining that alternative debt instruments were being explored, given the federal government’s fiscal constraints.
She also emphasised the significance of paying off the debts for the power sector, confirming that both the Coordinating Minister of the Economy, Mr Wale Edun, and the Debt Management Office ,DMO, head, Ms Patience Oniha, have expressed their support, adding that internal approvals are currently underway.
“We’re empathetic to what GenCos are facing”, Ms Verheijen said through her representative, Mr Eriye Onagoruwa, adding that while timelines could not yet be fully confirmed, significant groundwork had been laid.
“I hope by the next NESI meeting, I’ll be able to share a clear update”, she said.
The move followed a warning from the Gencos to federal government over the continued accumulation of debts.
The GenCos said the debt, which includes N2 trillion for 2024 and N1.9 trillion in legacy debts, was threatening the continued operation of their power generation plants.
They threatened that their operations which been handicapped by the mounting debt could lead to a shutdown of electricity, a development that could lead to considerable challenges.
