FG’s N3.3Trn DEBT PAYMENT TO GENCOS WILL GUARANTEE RELIABLE ELECTRICITY – TMV

The Tinubu Media Volunteers (TMV) habr applauded the decision of the federal government to approve a payment plan for N3.3 trillion being the legacy debt owed by the power-generating companies (GenCos)

In a statement signed by its Chairman Chukwudi Enekwechi and Secretary Segun Ogedengbe, it noted that although the legacy debt had been outstanding since 2015 before the emergence of the President Bola Tinubu administration, the government had to clear the obligations but as a means of ensuring improvement in electricity supply.

It said: “The approval for a payment plan for the debt to the power generating companies is coming after a verification was carried out and agreed with no fewer than eight generating companies operating fifteen power plants.

“The approval of the payment plan as a full and final settlement of the legacy debt is considered a fair and transparent resolution of a problem that had lingered for about a decade.

“It is also noted that the implementation of the payment plan has started with the operators of fifteen power plants signing the settlement agreements totalling N2.3 trillion.

“In line with this agreement, the federal government has already raised the sum of N501 billion to fund the payment out of which N223 billion has been disbursed, while the remaining will follow in due course.

“We see this development as part of the broader federal government reform strategy in the power sector that is aimed at creating more jobs and better service to electricity consumers.

“We also note that the federal government is emphasising provision of power to small businesses and industries with the sole aim of stimulating private sector participation in the economy.

We believe that the programme will provide more power to Nigerian homes, render stronger support for businesses and enable a system that works for all Nigerians.

“Also in furtherance of the federal government’s efforts to ensure the improvement of power delivery, it had facilitated the acquisition of loans and grants from multilateral development partners amounting to about $1.3 billion for the improvement of power transmission in the country.”

The group urged Nigerians to continue to support the Tinubu administration as it continues to take steps to improve the well-being of the citizenry.