The Federal Government has disbursed N330 billion to electricity Generation Companies (GenCos) as part of ongoing efforts to improve liquidity in Nigeria’s power sector and address longstanding challenges affecting electricity generation and supply.
The payment is intended to reduce part of the outstanding debts owed to power generation companies, enabling them to sustain operations, meet financial obligations, and improve the stability of electricity generation across the country.
In addition to the direct payment, the government has raised N729 billion through bond issuance to support broader reforms within the electricity sector. The bond programme is aimed at providing long-term financing, easing cash flow constraints, and addressing legacy liabilities that have hindered the industry’s performance.
According to government officials, the combined interventions are expected to strengthen the financial health of the power sector, encourage investment, and enhance the reliability of electricity supply nationwide. The measures form part of the administration’s wider strategy to improve energy infrastructure and support economic growth.
Stakeholders have long identified inadequate funding and mounting debts as major obstacles to efficient power generation and distribution. The government believes that the latest financial interventions will help restore confidence in the sector while creating a more sustainable framework for electricity market operations.
The Federal Government reaffirmed its commitment to implementing reforms that will improve power sector efficiency, attract private investment, and deliver more reliable electricity to homes, businesses, and industries across Nigeria.