After Tony Elumelu's Call-out, FG Finally Speaks On clearing N4 Trillion Electricity Debt

• Electricity Generation companies (Gencos) sent a Save Our Soul (SOS) message to the federal government
• They appealed to the government to help solve their cash liquidity crisis by repaying the N4 trillion debt
• The government has now responded to that appeal, sharing plans to resolve and clear the debt

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

For months, discussions have continued about the significant debts owed by the Federal Government to electricity generation and distribution companies in the Nigerian power sector.

For months, discussions have continued about the significant debts owed by the Federal Government to electricity generation and distribution companies.

The GenCos recently issued a statement urging the Federal Government and stakeholders in the power sector to settle the debts and provide the necessary cash liquidity for infrastructure investment and improved power generation in Nigeria.

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Speaking under the umbrella of the Association of Power Generation Companies (APGC), they noted that N2 trillion was for electricity supplied in 2024, and N1.9 trillion was for electricity supplied in 2023.

The group noted that the significant debt had made the GenCos unable to address sector issues or fulfill their obligations, the News Agency of Nigeria (NAN) reports.

The statement, signed by retired Colonel Sani Bello, Chairman of the Board of Trustees of APGC, warned that the electricity value chain could collapse entirely due to the debt and cash liquidity crisis exacerbated by the country’s challenging monetary and fiscal conditions.

Elumelu calls out FG on N600 billion debt

Last week, Nigerian billionaire and chairman of Transcorp Group, Tony Elumelu called out the federal government at an investors forum, over the substantial debts.

Elumelu told shareholders of Transcorp Energy that the federal government owed the company N600 billion for electricity supplied.

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The government has now responded to the call-out, giving the date when the debts would be cleared.

FG shares repayment plan to clear N4 trillion debt

Yesterday, the Ministry of Power released details of the plan to pay the N4 trillion owed to GenCos and DisCos.

Speaking on the matter, the Special Adviser on Strategic Communications and Media Relations to Minister of Power, Mr Bola Tunji disclosed that the minsty had started discussions eith the Ministry of Finance to explore payment debt resolutions options.

He noted that the government was aware of the debt and working to address it.

Tunji explained that the Minister had repeatedly stressed the implications of such huge debt on the power sector, and how it impeded the growth of the Gencos and Discos.

Adelabu had mentioned in a recent Legit.ng article that Discos may be forced to review tariffs to solve the liquidity crisis.

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Takeover looms as Discos face huge debt crisis

In related news, Legit.ng reported that an intensifying liquidity crisis has put more electricity distribution firms (DisCos) in danger of being taken over by regulators.

The report showed that several DisCos are in danger of going bankrupt because they are unable to pay their debts, operating expenses, and revenue collections.

Their incapacity to precisely measure and collect income is the main source of the issue, especially as the government also owes huge sums in subsidies.

Source: Legit.ng