Nigeria’s government has paid about $920 million of its debts to electricity generation companies, Power Minister Joseph Tegbe said in Lagos on 13 October, adding that the rest would be settled in 2027. The payments were made through bonds, and Tegbe said the government would avoid building up new arrears. Generators have for years received only part of their invoices because tariffs and collections do not cover costs, and the state-owned Nigerian Bulk Electricity Trading began paying legacy debts this month. Clearing arrears improves generators’ cash flow for gas and maintenance, which could raise supply, but new debts will build up if tariffs stay below cost.
Sources
- PM News: https://pmnewsnigeria.com/2026/10/13/electricity-fg-pays-n1-23trn-debt-targets-improved-power-supply/
- Leadership: https://leadership.ng/federal-government-pays-gencos-n1-23trn-pledges-to-avoid-fresh-debts/
- Business Post: https://businesspost.ng/general/fg-to-clear-outstanding-n1-23trn-power-debts-to-gencos-next-year/
- New Telegraph: https://newtelegraphng.com/fg-pays-n1-23trn-of-legacy-debt-owed-gencos/