The Presidency says it has begun processes to pay ₦2 trillion of a total ₦4 trillion owed to electricity generation companies for power supplied to the national grid. A representative of the Special Adviser to the President on Energy, Olu Verheijen, revealed this at a stakeholders meeting organised by the Nigerian Electricity Regulatory Commission (NERC).
Verheijen said the payment, expected to be completed before the end of the coming quarter, is part of efforts to stabilise the power sector. She added that the government is exploring alternative debt instruments due to fiscal constraints, noting that both the Coordinating Minister of the Economy, Wale Edun, and the Debt Management Office (DMO) support the plan.
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The generation companies have warned that the debt, which includes ₦2 trillion for 2024 and ₦1.9 trillion in legacy debts, is threatening their continued operations. Minister of Power Adebayo Adelabu had previously described the sector’s debt burden as crippling.
Adelabu in April promised to resolve the issues surrounding the debts to ensure the continued operation of power generation and distribution companies across the country.
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