Nigerian Government Settles N1.2 Trillion Power Debt

The federal government has settled N1.2 trillion of the N2.3 trillion owed to power sector operators to alleviate funding constraints and enhance electricity delivery across Nigeria. Mr Joseph Tegbe, the Minister of Power, made this announcement on Wednesday after a Federal Executive Council (FEC) meeting led by President Bola Tinubu at the Presidential Villa in Abuja.

The debt settlement is part of a broader initiative to improve grid stability, expand transmission, and provide alternative electricity to critical public institutions. The government aims to boost transmission capacity from approximately 5,000 megawatts to over 19,000 megawatts, facilitating better electricity evacuation from generating plants.

A nationwide technical audit is underway to identify aging facilities needing urgent intervention. FEC approved three projects to strengthen the transmission network, including upgrades to the Katampe transmission substation and the reconstruction of a transmission line along the Shagamu axis.

Additionally, the government is clearing over 300 containers of power equipment at ports and has begun constructing a new National Control Centre in Osogbo, Osun state.