As part of measures to address the epileptic power supply ravaging the country, President Bola Tinubu has approved the gradual payments of power sector debts estimated at over N3.3tn.
Consequently, about N1.3tn owed power generating companies by the Federal Government will be paid via cash injections and promissory notes, while about $1.3bn (N1.994tn using the current official closing rate) owed to gas companies will be paid via cash and future royalties.
The Minister of Power, Chief Adebayo Adelabu, disclosed at the 8th Africa Energy Marketplace held on Thursday in Abuja that government is subsidising electricity by shouldering the gas payment component for power generation.
Already, the Federal Government has commenced payment of the cash part of the N1.3tn debt owed Gencos and concluded plans to settle the second part via promissory notes within a timeframe ranging from two to five years.
The event themed, “Towards Nigeria ‘s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan.”
Disclosing the solution to the indebtedness to power generation companies, Adelabu stated that President Tinubu had directed the Minister of Finance to make immediate payment of N130bn from the Gas Stabilisation Fund, being part of the N1.3tn owed Gencos.
The power minister further explained that the payment of $1.3bn legacy debts owed gas producers would be sourced from future royalties and income streams in the gas sub-sector, a solution deemed satisfactory by the gas-supplying companies.
