FG Pays N1.2trn to Clear Power Sector Debt

The Federal Government has paid N1.2 trillion out of Nigeria’s N2.3 trillion outstanding power sector debt in a move to address liquidity challenges and improve electricity supply.

The Minister of Power, Joseph Tegbe, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council (FEC) meeting in Abuja.

The meeting was presided over by President Bola Tinubu at the State House.

Tegbe said the payment was part of the government’s broader intervention to ease financial constraints in the power sector, particularly those affecting gas supply to electricity generation companies.

He said the government was also implementing measures to stabilise the national grid, strengthen transmission infrastructure and improve electricity delivery across the country.

According to him, Lagos and neighbouring areas account for about 50 per cent of Nigeria’s electricity demand, while Abuja, Kano and other locations require improved transmission infrastructure.

The minister said the government planned to increase the country’s transmission capacity from the current 5,000 megawatts to more than 19,000 megawatts.

He explained that the expansion would address existing infrastructure gaps and enable the national grid to accommodate the country’s electricity generation capacity, estimated at over 13,000 megawatts.

Tegbe also identified delays in clearing consignments as one of the challenges affecting the availability of essential materials for electricity infrastructure development.

He said the government was working to resolve the outstanding clearance issues to facilitate the delivery of critical equipment.

The minister further disclosed that construction had commenced on a new National Control Centre in Osogbo, Osun, to replace the existing facility, which had been in operation for 64 years.

He said the modern facility would be equipped with advanced monitoring and control systems to enhance grid coordination, operational efficiency and nationwide transmission management.

Tegbe reaffirmed the administration’s commitment to settling outstanding financial obligations, modernising transmission infrastructure and expanding alternative energy solutions to ensure more stable and reliable electricity supply nationwide.