The federal government announced on Monday that it has paid N205 billion out of the N1.3 trillion debt owed to Power Generation Companies (Gencos) in a bid to boost liquidity in the power sector.
The government also highlighted that the recent improvements in electricity supply across various parts of the country were not coincidental, but the result of deliberate efforts by the Bola Tinubu administration.
During an oversight visit by the House of Representatives Committee on Power in Abuja, Minister of Power Chief Adebayo Adelabu urged lawmakers to continue putting pressure on the executive branch to ensure that debts owed to players in the power sector are fully paid.
Adelabu stated, “The government is gradually paying off its debt to these companies. Just about three weeks ago, we were able to pay N205 billion out of the N1.3 trillion owed to Gencos. They are pleased with this progress. However, I urge the members of the House committee to help us apply pressure on the executive to continue these payments.”
The minister expressed concern that given the current economic challenges, including fuel scarcity, Nigerians should not have to endure a national blackout, which would further diminish their quality of life.
Adelabu stressed the need to overhaul Nigeria’s power sector infrastructure and revisit the current tariff policy, noting that every segment of the power sector requires attention. “Many towers are collapsing, and substations are in a dilapidated state with outdated transformers, some of which were installed as far back as the 1960s. We haven’t been able to replace them, and the distribution infrastructure is also not functioning optimally,” he explained.
Addressing the metering gap, Adelabu noted that out of over 12 million electricity customers nationwide, just over five million have been metered, leaving a gap of more than seven million meters. He emphasized the ministry’s goal of installing two million meters annually over the next five years and expressed optimism that the power sector, which had been stagnant for the past 15 years, is now making significant progress.
On the Siemens project, Adelabu mentioned that the pilot phase is nearing completion, with several pieces of equipment already being installed nationwide. “We visited Germany and met with the German Chancellor to push for the acceleration of the presidential power initiative, known as the Siemens project. The following month, we had a meeting in Dubai and signed an acceleration agreement to ensure the project’s continuation. Within one year, we have almost completed the pilot phase, which includes the importation, commissioning, and installation of 10 power transformers and 10 mobile substations across Nigeria,” he said.
Adelabu also clarified that the improvements in power supply are not due to rainfall, as hydroelectric power only accounts for just over 20% of Nigeria’s total power generation. The remaining 80% comes from gas, making the recent improvements a result of intentional actions by the federal government through the Ministry of Power.
In his remarks, Chairman of the House of Representatives Committee on Power, Hon. Victor Nwokolo, urged the minister to ensure that Nigeria does not fall below the recently achieved 5,000 MW capacity.
Nwokolo warned that without a stable electricity supply, many companies would be forced to shut down, leading to job losses and worsening insecurity. He also called for stricter laws against the vandalism of power assets, which has become a significant issue in recent times.
The lawmaker criticized the recent tariff increase for selected customers, stating that due process was not followed. “The electricity act requires that any tariff increase must be phased over time and properly gazetted in different languages. There must be advertisements, consultations, and town hall meetings,” he said.
Nwokolo also noted that federal lawmakers are exploring ways to end the destruction of power assets nationwide. “We are considering some amendments to impose severe penalties for vandals, not just those who purchase the stolen materials. Several amendments are still in the pipeline,” he added. He further suggested involving local vigilance groups in the protection of electricity assets from vandals.
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