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FG owes power generation companies (Gencos) N4.7 trillion, posing a significant threat to the nation’s power supply.
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The debt has led to liquidity challenges, making it difficult for Gencos to pay gas suppliers, maintain turbines, and pay staff.
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Adebayo Adelabu, has assured that the government is taking steps to offset the debt and prevent power plants from shutting down.
The Federal Government’s debt of N4.7 trillion to power generation companies (Gencos) has sparked fears of a nationwide blackout.
The Minister of Power, Adebayo Adelabu, has assured that the government is taking necessary steps to offset the debt and prevent power plants from shutting down.
According to Adelabu, “We are always intervening. I can assure you that no power plant will shut down; nothing like that will happen because of the effect of that on the economy.”
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He added that the government will pay all players in the value chain, including Gencos and gas suppliers.
The debt has led to liquidity challenges, making it difficult for Gencos to pay gas suppliers, maintain turbines, and pay staff.
The Chief Executive Officer of the Association of Power Generation Companies, Dr. Joy Ogaji, stated that Gencos are suffering and need urgent and pragmatic solutions to ease their liquidity crisis.
The Executive Director of the Association of Nigerian Electricity Distributors, Sunday Oduntan, noted that the failure of customers like the military and other government agencies to pay their bills is affecting the electricity value chain. He cited the example of the Air Force, which owes over N4 billion.
The Minister of Power had earlier confirmed that the Federal Government owed electricity generation companies and electricity distribution companies over N4 trillion.
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He broke down the debt, stating that N2 trillion was owed to Gencos as legacy debt, and another N1.9 trillion was owed to them as part of the electricity subsidy for 2024.
Adelabu emphasised that the government cannot afford to continue funding the level of subsidy that the consumption pattern is throwing up. He stated, “How do you expect the Gencos to perform optimally? How do you expect them to pay for gas, services, and maintain their turbines and other infrastructure as well as pay their staff if a total of N4 trillion is being owed to them?”
FG, States, LGs Share ₦1.678trn February Revenue as FAAC Meets
The Federation Account Allocation Committee (FAAC) has shared a total sum of ₦1.678 trillion, representing the February 2025 Federation Account Revenue, to the Federal, State, and Local Governments.
The revenue was distributed at the March 2025 FAAC meeting held in Abuja, which was chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
