FG’s debt of N3trn to Gas Firms, Discos frustrating power supply nationwide
Facts on the observed poor power supply nationwide have emerged. The federal government has stated that the inability to pay over N3 trillion it owes gas companies and electricity generating companies is responsible for the low electricity supply in the country. Speaking during a press briefing, the Minister of Power, Adebayo Adebayo, said the government was owing gas companies $1.3 while it was owing (GenCos) N1.3 billion. The minister stated that the current low electricity was due to the gas companies requesting the debt they were being owed before they would provide new stock to the GenCos. He also said the government only budgeted N450 billion in 2024 to pay for electricity subsidy while the projected sum is N2.9 trillion. “The issue we are facing now is the persistent liquidity issues coming from inappropriate tariff regime, poor collections and inadequate funding of government subsidies leading to huge debts owed to the transmission, generation and gas supply companies.” This has restricted investments required for sustaining supply flow, capacity expansion and infrastructural improvements. It has also not only discouraged lending to the sector by financial institutions as the sectoral activities are not bankable, but has also made the sector unattractive to new investors.”
