FG to Pay N2tn Out of N4tn Debt Owed to GenCos – Adelabu

Minister of Power, Adebayo Adelabu, has assured that the Federal Government will pay N2 trillion of the N4 trillion debt owed to power generation companies (GenCos) before the end of 2025.

Speaking at the sixth Ministerial Press Briefing in Abuja on Thursday, Adelabu said the government is committed to avoiding a nationwide power shutdown, following threats by GenCos to halt electricity production over the mounting debt.

He noted that most of the debt is inherited, with about half of it accruing in 2024. He outlined plans to clear the debt through a combination of budgetary allocations and promissory notes.

“There are concrete plans to begin payment. While full settlement may not happen immediately, we are targeting close to N2 trillion in payments before year-end,” he stated.

Earlier this week, the Chairman of the GenCos’ Board of Trustees, Rtd. Col. Sani Bello, warned of a possible shutdown if the government failed to settle the N4 trillion debt.