The Federal Government says it will clear outstanding legacy debts owed to power generation companies (Gencos) by next year, following payments of about ₦1.23 trillion through bonds.
Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, reaffirming the government’s commitment to improving electricity supply and protecting vulnerable consumers.
He said the government was not only focused on settling accumulated debts but also on preventing fresh arrears from building up in the power sector.
According to Tegbe, resolving the outstanding obligations is expected to improve investor confidence and support efforts to ensure that available electricity generation capacity translates into more reliable supply for homes and businesses.
The government also reiterated its commitment to expanding access to steady electricity nationwide while ensuring that vulnerable groups are adequately protected.