The Federal Government says plans were underway to offset the N4 trillion debt owed to the Power Generation Companies (GenCos) for electricity generated.

Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Mr Bolaji Tunji, told the News Agency of Nigeria (NAN) in Abuja on Tuesday that the minister was very much concerned and the issue was being discussed with the Ministry of Finance on how the debt must be paid.

Tunji was reacting to a statement by GenCos appealing to the Federal Government and stakeholders in the power sector to settle the more than N4 trillion debts owed them for electricity generated.

”We expect the Ministry of Finance to take action on this soon.

”We are not unaware of this debt arising from the Federal Government’s commitment to subsidy. Part of the debts are legacy debts, which were on the ground before the minister of power assumed office.

”The minister has repeatedly harped on this, knowing the implication of such debts to the operations of the various power sector stakeholders, especially the GenCos,” the minister’s aide said.

The Association of Power Generation Companies (APGC), in a statement, said that GenCos were currently owed N2 trillion for power supplied in 2024 and N1.9 trillion in legacy debt.

The GenCos also noted that against the backdrop of the many challenges facing the power sector in Nigeria, the crises from
cash liquidity were on the top burner and had reduced their ability to continue to perform their obligations.

That, according to a statement issued by retired Col Sani Bello, Chairman Board of Trustees of APGC, was threatening to completely undermine the electricity value chain.

”Besides being owed huge debts, the GenCos were also operating under very harsh monetary and fiscal conditions.

”It is no more news that the GenCos have continued to bear the brunt of the liquidity crisis in the Nigerian Electricity Supply Industry (NESI),” he said. (NAN)