The Federal Government has reaffirmed its commitment to clearing outstanding legacy debts owed to power generation companies (Gencos) by next year, as part of efforts to attract investment and ensure reliable electricity supply across the country.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, noting that about ₦1.23 trillion of the outstanding debts had been settled through bonds.
He said the government was committed to clearing the remaining balance in 2027 while putting measures in place to prevent fresh arrears from accumulating in the power sector.
According to the minister, resolving the legacy debts is critical to restoring confidence among power generation companies and creating a more sustainable electricity market capable of supporting households, businesses and industries.
Tegbe noted that the goal goes beyond settling old debts, adding that the government is determined to ensure such arrears do not build up again, so that the sector can attract investment and deliver reliable power to homes and businesses across the country.
He said the commitment reflected the determination of the administration of President Bola Ahmed Tinubu to deliver a stable and reliable electricity supply for all Nigerians.
By clearing its obligations to Gencos and making full use of available generation capacity, he said, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda, so that homes, businesses and industries can count on steady power to drive growth and prosperity.