Wale Edun, the minister of finance and coordinating minister of the economy, says he presented a proposal to the federal executive council (FEC) to enable the federal government to clear the N4 trillion debt owed to power generation companies.
Edun spoke on Wednesday while briefing state house
correspondents after the FEC meeting, presided over by President Bola Tinubu.
Edun said during the council’s meeting, he presented a memo
on refinancing outstanding obligations in the electricity industry totalling N4
trillion.
“I presented a memo on the all-important refinancing of the
electricity sector’s outstanding obligations totalling N4 trillion,” the
minister said.
“Though the financing plan was not fully approved
immediately, we have moved into implementation, led by the Debt Management
Office and other experts.”
The minister said the first phase of the process should be
completed within three to four weeks, which will mark significant progress in
resolving the debt.
Refinancing is when a loan is replaced with another one. This means paying off a debt with another debt obligation.
In April 2025, power generation companies (GenCos) warned
that the N4 trillion unpaid debt owed by the federal government and
stakeholders for electricity generated threatens their operations.
A breakdown of the debt includes N2 trillion for 2024 and
N1.9 trillion in legacy debts.
Earlier in May, Adebayo Adelabu, minister of power, said the
federal government may borrow to settle part of the N4 trillion debt owed to
power generation companies (GenCos).
FG SEEKS $125M ISLAMIC BANK LOAN FOR ROAD PROJECTS IN ABIA
Further speaking, Edun said the federal government is
seeking $125 million from the Islamic Development Bank (IsDB) to fund
infrastructure projects in Abia state.
He said the loan will finance the construction of about 35
kilometres of roads in Umuahia and 126 kilometres in Aba.
“In addition to our other priorities, I presented a memo on
infrastructure support from the Islamic Development Bank totalling $125 million
for Abia State,” the minister said.
Edun said this financing will enhance critical road networks
connecting Umuahia and Aba, boosting transport efficiency and economic
activities in the region.
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