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Electricity: Tinubu approves payment of N2trn ‘legacy debts’ to GenCos for improved gas supply

Photo Collage of President Bola Ahmed Tinubu, GCFR, and Power Grid

*Chief Adebayo Adelabu, Minister for Power, explains President Bola Ahmed Tinubu has approved the N2 trillion fund to offset the legacy debts to gas companies and allow efficient gas supply to the power sector of the Nigerian economy

Isola Moses | ConsumerConnect

Sequel to recent threats by the power providers under the aegis of the Association of Power Generation Companies (APGC), to discontinue operations over what they described as “legacy debts” of N2 trillion to gas firms, President Bola Ahmed Tinubu has approved the payment of the amount for the electricity Generation Companies (GenCos).

Chief Adebayo Adelabu, Honourable Minister for Power, disclosed this development at the weekend during the BusinessDay Energy Conference held in Lagos.

Adebayo noted that the approved fund would offset the legacy debts to gas companies to allow efficient gas supply to the power sector going forward.

Also, to promote renewable energy penetration and off-grid solution, the Minister disclosed the Federal Government is about to commence the World Bank Distributed Access through Renewable Energy Scale-up (DARES) $750 million facility.

According to him, the objective of the effort is to increase access to electricity for 2.5 million people through the deployment of solar home systems and mini grids to households, Micro, Small and Medium Enterprises (MSMEs) throughout Nigeria, educational and health facilities.

He further stated: “This is in addition to the recently concluded $550 million Nigeria Electrification Plan which has bridged the energy access deficit by providing electricity to over 1.1 million households, MSMEs, educational and healthcare facilities in unserved and underserved rural communities.

“We believe that the global shift towards renewable energy is not just an environmental necessity but also an economic one.”

Adelabu also said: “Nigeria is blessed with abundant renewable resources, and we aim to continue tapping into these renewable sources to diversify our energy mix, reduce our carbon footprint, and ensure energy security.

“We have also secured a presidential approval to defray legacy debts to gas companies to allow efficient gas supply to the power sector going forward and a payment mechanism to address Generation Companies debts to ensure necessary maintenance are resolved and evacuation capacity optimisation.

“With this effort, we aim to not only increase our generation capacity but also improve the efficiency and reliability of our power supply.”

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