The Federal Government has reaffirmed its commitment to providing reliable electricity across Nigeria, pledging to clear outstanding legacy debts owed to power generation companies (Gencos) by next year.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, where he said the government had paid about ₦1.23 trillion of the accumulated debts through bonds.
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According to Tegbe, the remaining balance is expected to be settled in 2027, as the government seeks to strengthen confidence in the power sector and attract further investment.
The minister said the government’s objective goes beyond settling existing obligations, stressing the need to prevent fresh arrears from accumulating.
He noted that addressing the legacy debts would help create a more sustainable electricity market and support efforts to improve power supply to households, businesses and industries.
Tegbe also reaffirmed the administration’s commitment to protecting vulnerable groups while working towards a more stable and reliable electricity supply nationwide.
The government said it would focus on meeting its obligations to generation companies and making effective use of available electricity generation capacity to improve supply.
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The initiative forms part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to strengthen the power sector and create an environment capable of supporting economic growth and industrial development.
