FG Settles N1.23tn Debt to GenCos, Boosts Power Infrastructure

On Wednesday, the Federal Government announced it has paid N1.23 trillion out of the N3.3 trillion debt owed to electricity generation companies (GenCos). Minister of Power Joshua Tegbe made this announcement after a Federal Executive Council meeting led by President Bola Tinubu in Abuja.

Tegbe stated that President Tinubu has ordered the clearance of 300 containers of power equipment abandoned at various ports for up to 20 years. He emphasized the government's commitment to stabilizing the power grid while addressing liquidity and debt issues in the sector.

The government plans to increase transmission capacity from 5,000 megawatts to 19,000 megawatts and has approved three transmission infrastructure projects, including construction at the Katampe Transmission Substation and the supply of custom-manufactured transformers for the Egbin Transmission Substation. A technical audit of the national power infrastructure is also underway, dividing the country into three major energy zones.