President Bola Ahmed Tinubu has given the green light for the partial payment of the entire power sector debts, which are estimated to be around N3.3 trillion.
Adebayo Adelabu, the Minister of Power in Nigeria, made this announcement during the 8th Africa Energy Marketplace held in Abuja on Thursday.
He explained that the N1.3 trillion debt owed by the federal government to power-generating companies would be settled through a combination of cash injections and promissory notes.
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Additionally, the approximately $1.3 billion (equivalent to N1.994 trillion at the current official exchange rate) owed to gas companies will be paid through cash payments and future royalties.
Adelabu emphasized that the government had already started making cash payments towards the N1.3 trillion debt owed to Gencos and had finalized plans to clear the remaining portion through promissory notes over the next two to five years.
He mentioned that President Tinubu had agreed to the payment terms after the debts were reconciled between the government and the power-generating companies.
