Bola Tunji, spokesperson to Adebayo Adelabu, the minister of power, says the federal government has plans to clear the N4 trillion debt owed to power generation companies (GenCos).
Tunji said the minister is deeply concerned about the debt in an interview with NAN on Tuesday in Abuja.
The GenCos had recently warned that the debt, owed by the federal government and stakeholders, threatens their operations.
Sani Bello, chairman of the board of trustees of the Association of Power Generation Companies (APGC), said the federal government owes GenCos N2 trillion for electricity generated in 2024 and N1.9 trillion in legacy debts.
Reacting to the warning, Tunji said Adelabu has engaged the ministry of finance on ways to settle the outstanding liabilities.
“We expect the Ministry of Finance to take action on this soon. We are not unaware of this debt arising from the Federal Government’s commitment on subsidy,” he said.
“Part of the debts is legacy debts, which were on the ground before the minister of power assumed office.”
The spokesperson said the minister has repeatedly harped on the debts, knowing the implication of such to the operations of the various power sector stakeholders, especially the GenCos.
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