Nigeria: FG Directs Gradual Payment of N1.3tn, $1bn Gas Debts to Gencos, Suppliers

The federal government yesterday revealed that it had directed the Ministry of Finance to begin the payment of the first tranche of the N1.3 trillion gas supply debts owed power Generation Companies (Gencos) as well as gas suppliers.
The revelation came as the government admitted that many electricity Distribution Companies (Discos) operating in the country were technically insolvent and finding it difficult to do business.
Nigeria’s Minister of Power, Chief Adebayo Adelabu who spoke in Abuja, stated that a liquidation plan had been approved by President Bola Tinubu, beginning with the payment of about N130 billion in the first instalment.
Adelabu, along with others, spoke at the 8th African Energy Market Place themed: “Towards Nigeria’s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP).”
The minister explained that the government was working to get the distribution companies solvent and effective by unbundling their operations along state boundaries, insisting that their areas of coverage were too large for them compared to the Discos’ capacities.
“Mr. President has approved the submission made by the Minister of State Petroleum (Gas) to defray the outstanding debts owed to the gas supply companies to power generation companies.
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