The federal government has made a significant payment of N205 billion towards the N1.3 trillion debt owed to power generation companies (GenCos), aiming to boost liquidity in the power sector. Minister of Power Adebayo Adelabu announced this during an oversight visit by the House of Representatives Committee on Power.
Adelabu emphasized the need for gradual repayment of the liability, stating that the government has started paying the companies “little by little.” He urged the committee to press the executive to continue making payments to avoid a national blackout, which would exacerbate the current economic hardship.
The minister highlighted the need for comprehensive improvements in the power sector, including the renewal of infrastructure and revamping of the tariff policy. He noted that many power towers are collapsing, and substations are dilapidated, with some transformers dating back to the 1960s.
Adelabu also emphasized the significant metering gap, with only five million out of 12 million electricity customers metered, leaving a gap of over seven million meters. The ministry aims to install two million meters annually for the next five years.
Regarding the Siemens project, Adelabu stated that the pilot phase is nearing completion, with equipment being installed across the country. He attributed the recent improvement in electricity supply to the federal government’s efforts, including the acceleration agreement signed in Dubai.
Victor Nwokolo, Chairman of the House of Representatives Committee on Power, urged the minister to maintain the recent achievement of 5,000 megawatts and work towards stabilizing electricity supply. He suggested stricter laws to combat power asset vandalism and expressed opposition to the recent tariff increase, citing the need for due process and consultations.
