In a decisive step to strengthen Nigeria’s power sector, the Presidency has announced plans to clear outstanding debts owed to Generation Companies (GenCos). The move aims to improve the financial health of the power generation segment, enhance electricity supply stability, and attract further investment into the sector.
The accumulation of unpaid debts to GenCos has been a longstanding challenge, contributing to cash flow problems that hamper consistent power production. By settling these arrears, the government intends to restore confidence among power producers and ensure uninterrupted electricity generation.
The initiative aligns with the broader power sector reform agenda championed by the Federal Government to deliver reliable and affordable electricity to Nigerians. Officials confirmed that funds have been earmarked for immediate disbursement to GenCos, marking a significant milestone towards stabilizing the power supply and boosting the national economy.
Stakeholders in the energy industry have welcomed the development, expressing optimism that the debt clearance will catalyse improved operational efficiency and service delivery across the power value chain. The Presidency reiterated its commitment to sustaining reforms that foster a resilient and investor-friendly power sector.
