The federal government has constituted a committee to address the payment of outstanding debts owed to power generation companies (GenCos) and to establish sustainable payment mechanisms to prevent future accumulation.
The Permanent Secretary, Ministry of Power, Mahmuda Mamman, disclosed this on Monday in Abuja at the 10th Anniversary celebration of the Association of Power Generation Companies of Nigeria (APGC).
The event, themed "A Decade of Powering Progress, Driving Nigeria's Energy Transformation," brought together key stakeholders from across the power sector to reflect on achievements and challenges over the past decade.
Mamman, represented by Evangeline Babalola, a director in the ministry, said the committee's mandate was not only to clear existing debts but also to ensure financial sustainability in the power sector.
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"In recognition of the critical importance of resolving this issue for the sustainability of our power sector, Mr President has constituted a committee specifically mandated to address the payment of outstanding debts owed to the GenCos," he said.
He praised the GenCos for their resilience and patriotism despite being owed billions of naira, noting that their continued operations have kept the nation's lights on and the economy running.
He added that President Bola Tinubu was aware of the liquidity constraints facing the Nigerian Electricity Supply Industry (NESI) and was committed to finding lasting solutions to the debt burden.
On his part, Enyinnaya Abaribe, chairman, Senate Committee on Power, said the transformation witnessed in the power sector over the past decade had been both challenging and inspiring.
He commended APGC for navigating complex regulatory environments and serving as a bridge between GenCos and key stakeholders across the electricity value chain.
Earlier, Joy Ogaji, chief executive officer of APGC, said the association had, over the past 10 years, built strong partnerships and advocated for policies that promoted sustainability and transparency in the power sector.
"From humble beginnings, APGC has grown into a respected, results-driven association that unites generation companies under a common purpose, to power Nigeria's future sustainably and responsibly," she said.
Ms Ogaji noted that in spite of recurring liquidity challenges, gas shortages, and grid limitations, GenCos remained determined to drive Nigeria's energy transformation through persistence, collaboration, and reform advocacy.
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