Minister of Finance and Coordinating Minister of the Economy Wale Edun yesterday confirmed the presentation of a proposal to the Federal Executive Council (FEC) for the clearance of the N4 trillion debt owed to power generation companies (GenCos).
Edun told State House reporters after the FEC meeting that he presented a memo on refinancing outstanding obligations in the electricity industry.
He said: “I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion.
“Though the financing plan was not fully approved immediately, we have moved into implementation, led by the Debt Management Office and other experts.”
The minister said the first phase of the process should be completed within three to four weeks, which will mark significant progress in resolving the debt.
In April, the GenCos warned that the unpaid N4 trillion debt owed by the federal government and stakeholders for electricity generated threatens their operations.
A breakdown of the debt includes N2 trillion for 2024 and N1.9 trillion in legacy debts.
Also in May, Power Minister Adebayo Adelabu said the federal government may borrow to GenCos. The Nation/John Micheal
