Home Business President Tinubu, GenCos to meet over N4tn power sector debt – The Sun Nigeria
Business

President Tinubu, GenCos to meet over N4tn power sector debt – The Sun Nigeria

Share
Share


President Bola Tinubu is poised to meet the country’s power-generating companies to address the N4 trillion debt affecting Nigeria’s electricity supply chain.

The meeting comes after a high-level meeting on Tuesday between the Minister of Power, Adebayo Adelabu, and the chairmen of GenCos in Abuja over concerns of a potential collapse of the national grid due to liquidity constraints in the sector.

Speaking on the development, Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, disclosed that the federal government has decided to settle a substantial portion of the debt immediately.

Tunji added that the remainder would be cleared through financial instruments such as promissory notes within the next six months.

He further shared that the above would be tabled in a planned meeting between President Tinubu and the leadership of GenCos.

“There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for debt instruments in promissory notes to pay the rest.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu stated.



Source link

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

APM Terminals presents container transport electrification white paper to VP Shettima

By Steve Agbota APM Terminals has presented a white paper on container...

FG approves tax incentives to boost local production

From Charity Nwakaudu, Abuja The Director-General of the Raw Materials Research and...

Insurance critical for national security, economic stability

By Henry Uche National Insurance Commission (NAICOM) has maintained that insurance cover...

Exchange rate gap narrows on rising forex inflows, CBN policies

•How rising FX inflows support exchange rate stability, narrowing gap between official,...