By Ayomide Otitoju
The Federal Government has reaffirmed its commitment to improving electricity supply across Nigeria and clearing outstanding legacy debts owed to power generation companies (Gencos), while protecting vulnerable consumers.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, saying about ₦1.23 trillion of the outstanding debt had been paid through bonds, with the balance expected to be settled in 2027.
Tegbe said the government’s objective was not only to settle accumulated debts but also to prevent fresh arrears from building up in the power sector.
According to him, addressing the outstanding obligations would help strengthen investor confidence, attract new investments and improve electricity supply to households and businesses.
He added that the government remained committed to ensuring that vulnerable groups were adequately protected as reforms continued in the electricity sector.
The minister said the government aimed to make better use of available power generation capacity and establish a more financially sustainable electricity market capable of supporting economic growth.
The initiative forms part of the Federal Government’s broader efforts to improve power sector performance and advance its electricity supply objectives under President Bola Tinubu’s administration.
