The threat by Power Generation Companies (GenCos) to shut down their operations over N4 trillion debt federal government owns them has drawn reaction from the debtor.
“GenCos are currently owed about N4tr (N2tr for 2024 and N1.9tr in legacy debts). No possible solutions, including cash payments, financial instruments, and debt swaps are in sight. The 2025 government budget allocates only N900bn, raising concerns about its adequacy to cover arrears and future payments,” a statement by the Chairman BOT Power Generation Companies, Col Sani Bello (rtd), had read among other worrying communications that chiefly points to looming blackout.
However, it has got the Special Adviser, Strategic Communications and Media Relations to the Minister of Power, Bolaji Tunji, talking.
Tunji said the government is acquainted with the debt arising from the its commitment on subsidy.
He added that the debt would be offset soon.
“Parts of the debts are legacy debts, which were on the ground before the Minister of Power assumed office. The Minister of Power 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 of Power is very much concerned.The issue is being discussed with the Ministry of Finance, making a case for how the debt must be paid. We expect the Ministry of Finance to take action on this soon,” he said.
