By Abiola Olawale
The Federal government through the Minister of Power, Adebayo Adelabu, has assured Nigerians that the Federal Government (FG) will settle nearly N2 trillion owed to electricity Generation Companies (GenCos) before the end of 2025.
The announcement comes as a ray of hope amid threats of a nationwide blackout from GenCos, who cited severe liquidity challenges caused by unpaid invoices.
Adelabu made this known during a ministerial press briefing in Abuja on Thursday, where he addressed concerns about rising energy costs, unpaid subsidies, and recent tariff adjustments.
Recall that on April 14, GenCos raised an alarm, saying that the debt owed by the federal government and stakeholders threatens their operations.
The GenCos demanded immediate implementation of payment plans to settle all outstanding GenCos invoices.
Speaking on the issue, Adelabu said the debts are primarily unpaid subsidies—half of which were inherited, while the other half accumulated during the 2024 fiscal year.
He explained that the payments would be made through a combination of cash — via budgetary provisions — and promissory notes, which would serve as guaranteed debt instruments that generating companies could discount at banks for immediate cash.
He asserted: “These debts are unpaid subsidies due to the power-generating companies. We plan to pay close to N2 trillion out of the N4 trillion owed before the end of the year.”
The minister added that the government was in discussions with the Ministry of Finance and the coordinating minister of the economy to finalise the structure for the payments.
“I can tell you that between now and the end of the year, they’re going to pay close to N2 trillion out of these N4 trillion,” he said.
