The Federal Government has paid N1.23 trillion of its legacy debts to power generation companies (Gencos) through bonds, with the outstanding balance expected to be cleared next year.
The Minister of Power, Joseph Tegbe, disclosed this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos.
He said the government was committed to settling the outstanding obligations to Gencos while preventing fresh arrears from accumulating in the power sector.
Tegbe said clearing the debts was part of efforts to attract investment into the sector and improve electricity supply to homes and businesses across the country.
He reaffirmed the Federal Government’s commitment to providing reliable electricity to Nigerians while ensuring that vulnerable groups were adequately protected.
He said by clearing its obligations to Gencos and making full use of available generation capacity, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda, so that homes, businesses and industries can count on steady power to drive growth and prosperity.