FEDERAL GOVERNMENT SETTLES N100 BILLION GAS-TO-POWER DEBTS TO BOOST NATIONAL ELECTRICITY SUPPLY

Minister of Power Adebayo Adelabu announces major financial intervention to clear outstanding obligations to GenCos and gas suppliers, targeting immediate improvement in grid stability

The Federal Government has cleared N100 billion out of the legacy gas supply debts owed to Generation Companies (GenCos) and domestic gas suppliers in a strategic move aimed at stabilizing national power supply and ramping up grid output.

The Minister of Power, Chief Adebayo Adelabu, disclosed the financial settlement during a sector briefing in Abuja, explaining that the intervention addresses critical cash flow bottlenecks that have historically constrained gas producers from delivering adequate feedstock to thermal power plants across the country.

Adelabu noted that the debt settlement was executed following joint deliberations involving the Ministry of Power, the Ministry of Finance, the Nigerian Bulk Electricity Trading Plc (NBET), and domestic gas producers, reflecting the administration's broader push to restore market liquidity and enforce contract sanctity within the Nigerian Electricity Supply Industry (NESI).

Sector analysts and power producers welcomed the development, noting that clearing outstanding obligations enables gas suppliers to increase supply volumes to key thermal power plants, including Egbin, Niger Delta Power Holding Company (NDPHC) facilities, and Geregu, thereby enhancing overall generation capacity and reducing widespread load-shedding across the national grid.

The Federal Government reiterated its commitment to implementing full cost-reflective tariffs, modernizing transmission infrastructure, and working closely with state regulatory bodies under the Electricity Act framework to ensure long-term sustainability in the power sector.