The Federal Government has said that about N1.23 trillion of the legacy debt owed to electricity generation companies (GENCOs) had been paid so far through bonds.
It added that the balance would be cleared in 2027.
The Minister of Power, Joseph Tegbe, spoke at the Harvard Business School Association of Nigeria (HBSAN) Energy Conference in Lagos, according to a statement yesterday.
He noted that the goal goes beyond settling old debts.
The government, he said, is determined to ensure such arrears do not build up again, so that the sector can attract investment and deliver reliable power to homes and businesses across the country.
The minister also reaffirmed the federal government’s commitment to delivering steady electricity to every Nigerian, and reiterated that it will finish paying the legacy debts owed to power generation companies (Gencos) in 2027.
The commitment, the statement explained, reflects the determination of the administration of President Bola Ahmed Tinubu to deliver a stable and reliable electricity supply for all Nigerians.
It added that by clearing its obligations to Gencos and making full use of available generation capacity, the Federal Government is building a stronger, more investment-ready power sector in line with the Renewed Hope Agenda, so that homes, businesses and industries can count on steady power to drive growth and prosperity.
Recall that recently FG embarked on N728.979bn Series 2 issuance, with the first phase of the programme, the issuance has now totalled approximately N1.23tn.
The Special Adviser to the President on Energy, Olu Verheijen had in April 2026 said President Bola Tinubu had approved the payment plan to ‘finally settle’ the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
She added that Tinubu had approved a N3.3trillion payment plan to settle long -standing legacy debts in the power sector which accumulated between February 2015 and March 2025.
According to her, the debt repayment plan followed the ‘final review’ of the legacy debts that had beset the power sector for more than a decade.
But Ogaji argued that the debt was far more than Verheijen had claimed.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during the signing ceremony in Abuja of the N728.979bn bond stated that the government was attempting to resolve the legacy obligations while also preventing the electricity market from returning to the same cycle of unpaid debts.
Chief Executive Officer of the Association of Power Generation Companies (APGC), Dr Joy Ogaji, had claimed that the debt was nothing less than N7 Trillion.
