FG Planning on Offsetting N4trn Debt Owed GenCos
The Federal Government says plans were on the way to offset the N4 trillion debt owed the Power Generation Companies (GenCos) for electricity generated.
Mr Bola Tunji, Special Adviser, Strategic Communications and Media Relations, to the Minister of Power made this known in an interview with the News men in Abuja on Tuesday.
Tunji was reacting to a statement by the 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.
According to him, the Minister of Power is very much concerned and the issue is being discussed with the ministry of finance on how the debt must be paid. ”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 on subsidy. Part of the debts is 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 ,” he 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 are on the top burner and has reduced their ability to continue to perform their obligations.
This according to a statement issued by retired Col Sani Bello, Chairman Board of Trustees of APGC, is 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. #FG Planning on Offsetting N4trn Debt Owed GenCos#
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