FG Pays N1.23tn Power Debt, Targets Full Settlement in 2027

The Federal Government has paid N1.23 trillion in outstanding debts owed to power generation companies (GenCos) through bonds, with plans to settle the remaining balance in 2027.

The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria Energy Conference in Lagos, saying the government was committed to clearing its outstanding obligations and preventing new debts from accumulating in the power sector.

He explained that settling the debts was part of efforts to attract fresh investment, improve electricity supply and strengthen the financial stability of the power sector.

Tegbe reaffirmed the government’s commitment to providing reliable electricity to homes and businesses while protecting vulnerable consumers.

He added that clearing outstanding obligations and maximising available electricity generation capacity would help build a more investment-ready power sector and support economic growth.