FG has Paid N205bn of The N1.3tn Owed to Power Generators.
The Federal Government has recently announced a significant development in the power sector, revealing that it has successfully paid off N205 billion of the total N1.3 trillion debt owed to power generation companies. This strategic move aims to enhance liquidity within the sector, which has faced numerous financial challenges over the years. By addressing this substantial debt, the government hopes to stabilize the industry and ensure that power generation companies can operate more effectively.
During an oversight visit by the House of Representatives Committee on Power, the Minister of Power, Adebayo Adelabu, shared this crucial information in Abuja on Monday. He emphasized the critical role that lawmakers play in holding the executive accountable for settling outstanding debts owed to various stakeholders in the power sector. Adelabu urged committee members to sustain their pressure on the government to fulfill its financial obligations, highlighting that consistent advocacy is necessary to achieve this goal.
Adelabu elaborated on the ongoing efforts to address the debts, explaining that while the government still owes significant amounts to these companies, payments are being made incrementally. He pointed out that just three weeks prior, the government was able to pay N205 billion out of the total N1.3 trillion owed to generation companies. He noted that this payment has been met with appreciation from the companies involved, who are eager to see continued progress in settling these debts.
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In his remarks, the minister called on the members of the House committee to continue advocating for timely payments to these companies. He reiterated the government’s commitment to ensuring that all debts are settled, which he believes is vital for the long-term stability and growth of the power sector. By addressing these financial obligations, the government aims to foster a more conducive environment for investment and operational efficiency within the industry.
Furthermore, Adelabu announced ambitious plans to introduce a franchising system for power distribution. This innovative system is designed to empower trusted investors to take over existing power distribution infrastructure, which has been a point of contention due to inefficiencies and service gaps. Under this new framework, investors will be responsible for bringing in new transformers, reconstructing outdated cables, and supplying electricity to customers in areas that have been underserved.
The introduction of this franchising system is a key component of the ministry’s broader strategy to ensure that electricity reaches every corner of the country, particularly in regions where major distribution companies deem it unprofitable to operate. Adelabu expressed optimism about the potential of attracting reliable investors who are eager to seize opportunities within the existing framework. He mentioned that these investors would be required to pay royalties to the government, creating a mutually beneficial arrangement that supports both infrastructure development and revenue generation.
In conclusion, the minister also addressed the various challenges currently facing the power sector, including issues related to infrastructure, financial management, and service delivery. He emphasized the importance of innovative solutions and collaboration among stakeholders to improve the overall performance of the industry. Adelabu’s announcements reflect a proactive approach by the government to tackle longstanding issues in the power sector and pave the way for a more sustainable and efficient energy landscape in the country.
