Presidency has initiated processes to settle ₦2 trillion out of ₦4 trillion in legacy debts owed to electricity generating companies (GenCos) for power supplied to the national grid.
Gatekeepers News reports that this was disclosed by a representative of the Special Adviser to the President on Energy, Olu Verheijen, at a Nigerian Electricity Supply Industry (NESI) stakeholders meeting.
“We’re empathetic to what GenCos are facing,” Verheijen’s representative, Eriye Onagoruwa, said, adding that significant groundwork had been laid despite fiscal constraints. “I hope by the next NESI meeting, I’ll be able to share a clear update,” she said.
The move follows a warning from GenCos that the accumulated debt, now totalling over ₦4 trillion, threatens the continued operation of their power generation plants. The debt includes ₦2 trillion for 2024 and ₦1.9 trillion in legacy debts.
The Presidency is exploring alternative debt instruments, with the Coordinating Minister of the Economy, Wale Edun, and the Debt Management Office (DMO) expressing support. Internal approvals are currently underway.
