FG pays N1.2tn power sector debt, approves three transmission projects
The federal government has paid N1.2tn of the N2.3tn owed to operators in Nigeria’s electricity sector and approved three transmission projects to strengthen the national grid and improve power supply.
The Minister of Power, Joseph Tegbe, disclosed this on Wednesday while briefing State House correspondents on the outcome of the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Tegbe said the payment was part of efforts to address liquidity challenges in the electricity industry, particularly those affecting gas supply to power generation companies.
He said the government was pursuing measures to settle outstanding obligations, upgrade transmission infrastructure and improve electricity delivery nationwide.
The minister said, “As part of our efforts to address the liquidity challenges in the power sector, we have made significant progress in settling outstanding debts owed to operators.”
He added that the government has begun a nationwide technical audit of electricity infrastructure to identify ageing facilities and determine which require urgent rehabilitation or replacement.
According to him, the country has been divided into three major energy zones to guide interventions based on electricity demand and infrastructure needs.
“Lagos and its environs account for about 50 per cent of our national electricity demand. We are looking at how best to address the peculiar challenges in each of these zones,” he said.
Tegbe said the government planned to increase transmission capacity from about 5,000 megawatts to more than 19,000 megawatts to accommodate Nigeria’s electricity generation capacity, which he put at over 13,000 megawatts.
