BREAKING: Federal Government’s Electricity Debt Rises by N800 Billion — Senate

The Nigerian Senate has raised concerns over the escalating electricity debt owed by the Federal Government, which has surged by N800 billion in just four months. The Senate Committee on Power disclosed that the government has failed to make payments to electricity generating companies (GenCos) since the beginning of 2025, exacerbating the liquidity crisis in the power sector.

Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, revealed that the government’s monthly debt obligation stands at N200 billion, leading to a cumulative shortfall of N800 billion this year alone. He warned that the mounting debt, coupled with an existing backlog exceeding N3 trillion, threatens the stability of the electricity industry and could result in severe disruptions to power supply nationwide.

The Senate emphasized the urgent need for decisive action to address the financial crisis, urging both federal and state governments to collaborate on sustainable solutions. “A decision must be made on whether to subsidize electricity or fuel, as this crisis affects every sector of the economy,” Senator Abaribe stated.

Minister of Power, Adebayo Adelabu, acknowledged the challenges facing the sector, citing funding gaps and infrastructure vandalism as major obstacles to progress. Despite efforts to increase power generation, the financial strain on GenCos and gas suppliers continues to hinder the sector’s growth.