FG Pays N1.23tn of N3.3tn GenCos Debt — Minister

The Federal Government has paid ₦1.23 trillion out of the ₦3.3 trillion in outstanding legacy debts owed to electricity generation companies (GenCos), the Minister of Power, Joseph Tegbe, has disclosed.

Tegbe made the disclosure on Wednesday, October 28, 2026, while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu in Abuja.

According to the minister, the payment represents progress in addressing longstanding financial obligations that have affected the electricity value chain, particularly the supply of gas required by power plants to generate electricity.

He said the unpaid debts had contributed to difficulties in securing feedstock gas for generation companies, affecting their operations and the wider stability of the power sector.

The government is implementing a debt-reduction programme designed to settle verified legacy obligations and improve liquidity across the electricity market. The programme uses bond issuances to address accumulated debts and restore confidence among industry participants.

The first two bond issuances under the programme raised approximately ₦1.23 trillion. The second issuance, worth about ₦728.9 billion, followed the first series of approximately ₦501 billion issued in January 2026.

Tegbe said the government’s efforts extended beyond settling historical debts, with plans to strengthen transmission infrastructure and improve the national grid’s capacity.

He disclosed that the government intended to increase transmission capacity from the current level of about 5,000 megawatts to approximately 19,000 megawatts through targeted investment and grid expansion.

The minister’s comments come amid continuing concerns over electricity reliability, gas supply constraints, infrastructure limitations and financial challenges across Nigeria’s power sector.

Although settling the outstanding obligations is expected to ease financial pressure on generation companies and other participants, the government also faces the challenge of preventing new arrears from accumulating.

The administration has said that resolving legacy debts must be accompanied by structural reforms, stronger revenue collection and improved efficiency throughout the electricity market.

The outstanding ₦3.3 trillion represents a substantial portion of the verified obligations the government is seeking to address, while the planned infrastructure expansion is intended to support improved electricity transmission and long-term sector stability.