FG pays N1.23trn power debt, targets full settlement next year
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…
Nigeria's electricity market has long been weighed down by a chain of unpaid debts, with the Federal Government and distribution companies (DisCos) owing generation companies (GenCos) for power supplied but not remitted. These legacy debts, built up over years of tariff shortfalls, subsidy gaps and liquidity problems in the sector, have made it difficult for GenCos to maintain plants, settle gas supply obligations and attract fresh investment, contributing to the unreliable electricity supply many Nigerians experience.
The government has in the past turned to instruments like promissory notes and bonds to clear portions of this backlog, as it appears to be doing again here. Daily Trust and Tribune Online agree on the headline figure — about N1.23 trillion paid through bonds — but differ slightly on the timeline for full settlement, with Daily Trust citing "next year" and Tribune specifying 2027, a discrepancy that may simply reflect when each report was published relative to the minister's remarks. Neither report yet details the total size of the outstanding legacy debt, how the bonds were structured, or which GenCos have been paid.