Minister: FG Set to Clear GenCos, Gas Suppliers Debts in April

The Minister of Power, Adebayo Adelabu, revealed plans for the Federal Government to begin partial payment of outstanding debts owed to power generating companies and gas suppliers starting from April. Adelabu made this announcement during a visit to Egbin Power Plc in Lagos State, emphasizing the importance of sustaining operations in the power sector.

Adelabu assured stakeholders of the government’s commitment to resolving issues surrounding debt repayment and foreign exchange allocation. He acknowledged the significant debt owed to power generating companies, particularly highlighting Egbin Power plant, and pledged to initiate payments as an incentive to maintain their operations.

Addressing challenges related to gas shortage, Adelabu discussed ongoing discussions with the Minister of State for Petroleum Resources and gas suppliers to address outstanding debts. Plans include cash injections and access to Nigeria’s gas wells to gradually offset debts, with anticipated impacts expected to be felt from April onwards.

The CEO of Egbin Power, Mokhtar Bounour, echoed concerns about revenue losses due to gas shortages, resulting in decreased power generation capacity. He emphasized the critical importance of resolving liquidity issues, highlighting the substantial debt owed by the Federal Government and expressing optimism for improvements starting in April to sustain the viability of the business.