The federal government has announced a payment of N205 billion from the N1.3 trillion debt owed to Generation Companies (GenCos) as part of efforts to improve liquidity in the power sector.
During a visit by the House of Representatives Committee on Power, Adebayo Adelabu, minister of power highlighted that recent improvements in electricity supply are a result of deliberate government actions. He urged the lawmakers to continue pressing the executive branch to settle outstanding debts to power sector players.
“In terms of market liquidity, the government has begun settling debts owed to these companies. Just three weeks ago, we managed to pay N205 billion out of the N1.3 trillion owed to GenCos,” Adelabu said.
He called on the House committee to maintain pressure on the executive to continue these payments.
Adelabu also stressed the importance of preventing nationwide blackouts, particularly given the current economic challenges, including fuel shortages. He emphasised the need to renew power sector infrastructure and revisit the current tariff policy.
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“Many of our towers are failing, and substations are in poor condition with outdated transformers, some dating back to the 1960s,” Adelabu noted. He also pointed out the significant metering gap, with over seven million out of 12 million electricity customers nationwide still unmetered.
The minister expressed optimism about the sector’s future, stating the ministry’s goal is to install two million meters annually for the next five years.
He also provided an update on the Siemens project, noting that the pilot phase is nearing completion with significant equipment installations nationwide.
Adelabu added, “The improvements you see today are intentional, driven by the federal government’s efforts through the Ministry of Power, not just seasonal factors like rainfall. Hydroelectric power only contributes about 20 per cent of our total generation; the rest comes from gas.”
Victor Nwokolo, chairman of the House Committee on Power, urged the minister to maintain the recent achievement of 5,000 megawatts of electricity supply, stressing the economic impact of power shortages on businesses and employment.
Nwokolo also called for stricter laws against power asset vandalism and criticized the recent tariff increase for selected customers, arguing that due process was not followed.
He emphasised the need for better communication and consultation regarding tariff changes, as required by the electricity act.
Nwokolo also suggested involving local vigilance groups in protecting electricity assets from vandals, indicating that the committee is considering legislative amendments to address these issues.
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