FG commits to clearing Gencos’ debts, targets steady power supply
The Federal Government has reaffirmed its commitment to clearing outstanding legacy debts owed to power generation companies (Gencos) by next year, as part of efforts to attract investment and ensure reliable…
Nigeria's power sector has long been weighed down by unpaid debts owed to generation companies (Gencos) for electricity supplied to the grid, a legacy of the 2013 privatisation that handed generation and distribution to private firms while the government retained significant financial obligations, including subsidy shortfalls and unpaid invoices. These arrears have repeatedly been cited by Gencos as a major constraint on their ability to maintain and expand power plants, pay for gas supply, and attract fresh investment, contributing to the epileptic power supply that has frustrated households and businesses for years.
The federal government's renewed pledge to settle these debts comes amid ongoing efforts to stabilise the sector following reforms such as the Electricity Act and moves toward cost-reflective tariffs. Coverage of this announcement varies in specificity: while both outlets agree the government is committing to clear outstanding legacy debts to boost steady power supply, Legit.ng cites a concrete figure of ₦1.23 trillion already paid and a 2027 target for full settlement, whereas Tribune Online's report points to a "next year" timeline without the same financial detail. Key questions remain unaddressed in both reports, including the total outstanding debt figure, the source of funding for the payments, and what structural changes will prevent similar arrears from recurring.