FG Considers N4trn Debt to Settle GenCos’, Adelabu Says

The Minister of Power, Adebayo Adelabu, has announced that the Federal Government may resort to taking a loan to settle a percentage of the N4 trillion debt it owes power generation companies (GenCos).

Adelabu disclosed this while speaking in a meeting with Association of Power Generation Companies (APGC) leaders.

The minister’s media aide, Bolaji Tunji, disclosed the details of the meeting in a statement.

“We need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest,” said Adelabu.

A few days ago, the GenCos lamented how debt was crippling their operations.

The chairman of Mainstream Energy Solutions and head of APGC, Sani Bello, also corroborated this during the meeting.

While speaking, Sani said that the N4 trillion owed has crippled the power generation companies’ ability to maintain their infrastructure.

The minister has assured them that the federal government will prioritise the payment of a percentage of the debt.

According to him, a large part of it will be paid in cash, while the rest will be paid using promissory notes.

He noted that the debt will be cleared within six months.

“We recognise the urgency of this matter. The federal government is committed to resolving this debt to stabilise the sector and prevent further crisis,” said Adelabu.