The federal government has paid N205 billion of the N1.3 trillion owed to power generation companies (GenCos) as part of efforts to improve liquidity in Nigeria’s power sector.
Adebayo Adelabu, the Minister of Power, made this announcement during an oversight visit by the House of Representatives Committee on Power. Adelabu had previously stated that Nigeria’s total debt to power generation and gas companies was N3 trillion. On May 16, he revealed that President Bola Tinubu had approved a phased repayment plan for these debts.
During the visit, Adelabu urged lawmakers to continue pressing the executive branch to ensure ongoing payments. He highlighted that recent payments aim to prevent a national blackout amid the current economic challenges, which include petrol shortages and inflation.
Adelabu also emphasized the need for significant upgrades to Nigeria’s power infrastructure, noting that many facilities, including substations and transformers, are outdated. He pointed out a significant metering gap, with only five million out of over 12 million electricity customers currently metered. The ministry aims to install two million meters annually over the next five years.
Regarding the Siemens project, Adelabu reported progress in the pilot phase, including the installation of power transformers and mobile substations. He attributed recent improvements in electricity supply to these efforts.
Victor Nwokolo, chairman of the House of Representatives Committee on Power, urged the minister to maintain the electricity supply above the recent 5,000 megawatts threshold. He also called for stricter laws to address power asset vandalism and opposed recent tariff increases, citing procedural issues.
Nwokolo and other lawmakers are exploring measures to prevent further destruction of power assets and ensure stable electricity supply for the nation.
