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FG May Take Fresh Loan to Offset N4 Trillion Power Sector Debt – Minister Adelabu
Nigeria’s Minister of Power, Adebayo Adelabu, says the federal government is considering securing a loan to partially pay off the N4 trillion debt owed to power generation companies (GenCos).
Adelabu made the disclosure during a meeting with executives of the Association of Power Generation Companies (APGC), where concerns were raised over the crippling effect the debt has had on the power sector.
According to the minister, the government plans to pay a significant portion of the debt in cash, while the remaining balance would be settled through promissory notes.
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“We need to pay a substantial amount of the debt in cash. Then, we can issue promissory notes to cover the rest,” Adelabu reportedly said in a statement released by his media aide, Bolaji Tunji.
Just last week, the GenCos publicly decried how the unpaid debt has hampered their ability to maintain infrastructure and sustain operations. Sani Bello, chairman of Mainstream Energy Solutions and head of the APGC, echoed this concern during the meeting, saying the N4 trillion backlog has left the companies struggling.
Adelabu assured the GenCos that the federal government is treating the issue with urgency and has pledged to clear the debt within six months.
“We understand how critical this is. The government is committed to resolving it quickly to prevent further collapse in the sector,” he said.