The Federal Government has announced steps towards resolving the long-standing issue of unpaid bills owed to power generation companies (GenCos), with the total sum exceeding N4 trillion. Mr. Bola Tunji, the Special Adviser to the Minister of Power, revealed this development in Abuja, acknowledging the critical nature of these debts. His statement followed a public outcry from the Association of Power Generation Companies (APGC), who warned that the accumulating financial burden was severely impacting their operations and threatening a wider energy crisis.
Tunji conveyed the Ministry of Power’s active engagement with the Ministry of Finance to expedite the payment process. He recognized that these debts, partly stemming from past subsidy commitments, represent a significant impediment to the efficient functioning of the power sector. The minister, according to Tunji, has consistently emphasized the dire consequences of these outstanding payments on all stakeholders within the power industry, particularly the GenCos responsible for generating the nation’s electricity.
The APGC had earlier painted a stark picture of the financial strain, disclosing that its members are owed N2 trillion for power supplied in the current year, in addition to a substantial legacy debt of N1.9 trillion. The GenCos also highlighted the challenging economic conditions, including volatile exchange rates and high inflation, which further compound their difficulties. Industry stakeholders have repeatedly urged the government to implement robust financial stabilization measures to prevent a potential collapse of the power generation and distribution network.
The commitment from the Federal Government to address this N4 trillion debt offers a potential lifeline to the struggling power generation companies. It is anticipated that the settlement of these outstanding payments will inject much-needed liquidity into the sector, enabling the GenCos to operate more effectively and contribute to a more stable and reliable electricity supply for the country.
