The Federal Government will finish paying the verified legacy debts owed to power generation companies in 2027.
The Minister of Power, Joseph Tegbe, announced this at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos.
He said about N1.23 trillion of the backlog has been paid so far through bonds, with the balance to be cleared next year.
He explained that the goal goes beyond settling old debts, adding that the government is determined to ensure such arrears do not build up again, so that the sector can attract investment and deliver reliable power to homes and businesses across the country.
The commitment reflects the determination of the administration of President Bola Ahmed Tinubu to deliver a stable and reliable electricity supply for all Nigerians, he said.
According to him, by clearing its obligations to Gencos and making full use of available generation capacity, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda.
