Nigeria Tackles N3.3 Trillion Power Sector Debt Crisis
• Daily Trust • Business
The Nigerian government is currently addressing a significant debt of N3.3 trillion owed to the power sector, as outlined by Bayo Onanuga, a special adviser to the president on energy. This debt largely stems from unpaid subsidies and legacy liabilities that have plagued the sector for over a decade. The proposal aims to unlock improvements across the electricity value chain, enhance reliability, attract new investments, and ultimately create job programs. The legacy debt primarily refers to the federal government's financial obligations to power generation companies (Gencos) within the Nigerian electricity supply industry (NESI) from 2015 to March 2025. The Nigerian Bulk Electricity Trading PLC has absorbed part of the costs to keep electricity affordable, but Gencos dispute the government's figure of N3.3 trillion, claiming the total outstanding obligations hover around N4 trillion. This includes N2 trillion in accumulated debt and an additional N2 trillion in unpaid subsidies for 2024. Approximately 75% of the reported debt is owed to gas suppliers, which has led to reduced electricity output nationwide.
Topics: Economy, Power