Wale Edun, minister of finance and coordinating minister of the economy has presented a proposal to Federal Executive Council (FEC) to enable federal government to clear the N4 trillion debt owed to power generation companies (GenCos).
Gatekeepers News reports that speaking on Tuesday after the FEC meeting presided over by President Bola Tinubu, Edun said the proposal focused on refinancing the electricity sector’s outstanding obligations.
He said, “I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion.”
Although the financing plan was not immediately approved in full, Edun noted that implementation has begun, led by the Debt Management Office and other experts. The first phase of the process is expected to be completed within three to four weeks.
In April 2025, GenCos warned that the N4 trillion unpaid debt threatened their operations. The amount includes N2 trillion for 2024 and N1.9 trillion in legacy debts.
Earlier in May, Adebayo Adelabu, minister of power, said the federal government might borrow to settle part of the outstanding sum.
Edun also disclosed that the federal government is seeking $125 million from the Islamic Development Bank (IsDB) to fund road projects in Abia State. The loan will finance the construction of about 35 kilometres of roads in Umuahia and 126 kilometres in Aba.
He said, “In addition to our other priorities, I presented a memo on infrastructure support from the Islamic Development Bank totalling $125 million for Abia State.”
“In addition to our other priorities, I presented a memo on infrastructure support from the Islamic Development Bank totalling $125 million for Abia State.”
Edun added that the projects would enhance critical road networks and boost economic activities in the region.
