FG Yet to Pay N3.3tn Power Debt Approved by Tinubu

The Federal Government of Nigeria has not commenced payment of the N3.3 trillion power sector debt approved by President Bola Tinubu in April. Joi Ogaji, Chief Executive Officer of the Association of Power Generating Companies, stated during a webinar that no payments have been made under the debt settlement arrangement.

The government had previously reduced the debt from N4 trillion to N3.3 trillion, but Ogaji insisted that the full amount remains outstanding. She noted that the government had raised N501 billion to support the payment but that no funds have been disbursed to the generating companies.

Ogaji explained that five generating companies agreed to terms attached to the government's bond program, but only five companies, including Geregu Power Plc and Ibom Power Company, have received payments. The overall debt burden in the power sector continues to grow, with the total ballooning to N7 trillion.

The government aims to resolve this issue through a financial reform program.