The Federal Government on Thursday promised to pay the power generation companies (GenCos) the sum of N2trn out of the N4trn owed them.
THE WHISTLER had earlier reported that GenCos) had last week issued a warning to the Federal Government over the continued accumulation of debts now totalling over ₦4trn.
The companies announced that they are on the brink of shutting down operations due to the growing liquidity crisis in the power sector.
In a statement released under the umbrella of the Association of Power Generation Companies (APGC), the GenCos expressed deep frustration over what they described as “inadequate payment for electricity generated and consumed on the national grid.
Speaking at the sixth edition of the 2025 ministerial briefing in Abuja, the Minister of Power, Adebayo Adelabu, said the N2trn will be paid in cash and on a promissory note.
The promissory note, according to him, would allow the power-generating companies access to financial loans that would aid their generation.
The event was organised by the Federal Ministry of Information and National Orientation.
Adelabu said he had secured the approval of the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, to carry out the assignment.
He said, “These debts are unpaid subsidies of the federal government, which are due to the power generation companies, and almost half of it was inherited, while about half of them came from 2024 operations.
“And I agree with you, there was a publication in the paper where the companies threatened to shut down their plants. I pray they are not. There are plans underway to make these payments.
“While I will not say it will be paid 100 per cent, we will be paying it down gradually. And the mode of payment is in two ways. We have some budgetary provisions, which will facilitate cash payments.
“While we are also discussing with the generating companies to give them some guaranteed debt instruments, like the promissory notes, which we will give to them to pay down some of these debts. These promissory notes will be liquid enough for them to be taken to the banks for discounting if they need an immediate cash injection.
“So, it’s a combination of cash payments and promissory notes. And I can tell you that between now and the end of the year, we are going to pay close to N2tn out of these N4tn.
“I’ve had discussions with the Minister of Finance and the coordinating minister for the Economy, who has promised that they are working on the promissory notes. And once we have budget releases, cash payments will also be made.
Adelabu also remarked that the Federal Government’s debts to the Abuja Electricity Distribution Company (AEDC) has reduced to N8.17bn.
The minister attributed it to the reconciliatory effect, adding that debt decreased from N15.53bn to N8.17bn.
He said, “Furthermore, regarding market liquidity, the reconciliatory effort has led to the reduction of federal debt owed to Abuja Disco by 47.4 percent, decreasing from N15.53bn to N8.17bn.
The minister also added that Nigeria reached a remarkable generation available capacity of 6,003 megawatts, marking the first time this level had been recorded in the country’s history of the power sector.
“On the 2nd of March 2025, Nigeria reached a remarkable generation available capacity of 6,003 megawatts, marking the first time this level had been recorded in the country’s history of the power sector.
“Let me thank our agencies, our operators, that this happened during our time. We have crossed the bar of 6,000 megawatts for the first time in the history of Nigeria’s power sector. That is not enough, Adelabu said.
