- The Federal Government forms a committee to clear outstanding debts owed to power generation companies.
- The new body will establish a sustainable payment system to prevent future debt build-up.
The Federal Government has created a committee to resolve GenCos’ outstanding debts and secure long-term financial stability. This decision shows renewed commitment to strengthening Nigeria’s energy sector and preventing future debt accumulation.
Announcing the move in Abuja, the Permanent Secretary of the Ministry of Power, Mr Mahmuda Mamman, spoke at the 10th anniversary of the Association of Power Generation Companies (APGC). The event, “A Decade of Powering Progress, Driving Nigeria’s Energy Transformation,” brought together key players from the power industry.
According to Mamman, the committee will clear unpaid debts and develop sustainable payment mechanisms. He said President Bola Tinubu approved the committee to tackle long-standing financial constraints affecting power generation.
Furthermore, Mamman praised Gencos’ resilience despite persistent liquidity challenges. He noted that their dedication has kept electricity flowing and businesses operating nationwide. “This is not just business; this is patriotism in action,” he remarked.
He added that the President is aware of the financial strain within the Nigerian Electricity Supply Industry. Therefore, the administration remains committed to finding lasting solutions. The government also aims to restore investor confidence and strengthen overall performance within the sector.
In addition, Mamman commended GenCos for creating jobs and training engineers. He said their contributions continue to boost local economies and support industrial growth.
Meanwhile, Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, highlighted APGC’s advocacy for reform. He praised its efforts to connect GenCos with regulators and key stakeholders in the power value chain.
Similarly, APGC Chief Executive Officer, Dr Joy Ogaji, said the association has promoted transparency and sustainability through strong partnerships. Although issues like gas shortages and grid instability persist, she reaffirmed GenCos’ commitment to driving Nigeria’s energy transformation.
Ultimately, the creation of this committee marks a crucial step towards clearing GenCos’ outstanding debts and building a more transparent and reliable electricity market for Nigeria’s future.