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FG under Gencos N4.7 trillion poses a major threat to U.S. power supply.
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Debt has led to liquidity challenges, making it difficult for Gencos to pay gas suppliers, maintain turbines and pay employees.
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Adebayo Adelabu assured that the government is taking steps to offset debt and prevent power plants from closure.
Federal government’s N4.7 trillion gulf debt to Gencos has sparked concerns about a nationwide power outage.
Minister of Power Adebayo Adelabu assured that the government is taking the necessary steps to offset debt and prevent power plants from closure.
According to Adelabu, “We are always intervening. I can assure you that no power plants will be closed; nothing will happen because of the economic impact of this impact.”
He added that the government will pay all participants in the value chain, including Gencos and Gas suppliers.
Debt has led to liquidity challenges, making it difficult for Gencos to pay gas suppliers, maintain turbines and pay employees.
Dr. Joy Ogaji, CEO of the Power Generators Association, said Gencos is suffering and needs urgent and pragmatic solutions to alleviate its liquidity crisis.
Odettan, executive director of the Nigerian Electric Power Distributors Association, pointed out on Sunday that the failure of customers who failed to pay their bills by customers like military and other government agencies is affecting the electricity value chain. He cites the Air Force’s role model, which owes more than 4 billion guilds.
The power minister had earlier confirmed that the federal government owed more than 4 trillion yuan in power generation companies and power distribution companies.
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He violated the debt, saying N2 trillion owed Gencos as estate debt, while another $1.9 trillion owed part of the 2024 electricity subsidy.
Adelabu stressed that the government is unable to continue to fund the subsidy levels paid by the consumption model. “How do you expect Gencos to perform well? How do you expect them to pay for gasoline, serving and maintaining their turbines and other infrastructure, and if you owe them a total of $4 trillion?”
FG, State, LGS Share ₦1.678Trn February Revenue, FAAC Conference
The Federal Account Allocation Commission (FAAC) shared a sum of $1.678 trillion, representing federal account revenues for February 2025, and shared with federal, state and local governments.
Revenues were allocated at the FAAC meeting in Abuja in March 2025, chaired by the Minister of Finance and Minister of Economic Coordination Wale Edun.
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