FG Constitutes Committee to Settle GenCos’ Outstanding Debts

The Federal Government has inaugurated a committee to address the payment of outstanding debts owed to Power Generation Companies (GenCos) in the country.

The committee, according to the Permanent Secretary of the Ministry of Power, Mr. Mahmuda Mamman, will also design a sustainable payment mechanism to prevent the reoccurrence of unpaid obligations within the power sector.

Mamman made this known on Monday in Abuja during the 10th-anniversary celebration of the Association of Power Generation Companies of Nigeria (APGC), themed

“A Decade of Powering Progress, Driving Nigeria’s Energy Transformation.”

He noted that settling the GenCos’ debts and ensuring a consistent payment structure is essential to restoring investor confidence and improving electricity generation across the country.

“The committee’s mandate is not only to clear existing liabilities but also to put in place a framework that ensures regular and transparent payments going forward,” Mamman stated.

The event, which drew stakeholders from across the energy industry, provided a platform to review the progress made since the privatization of Nigeria’s power sector in 2013 and to chart a course for sustainable growth.

Chairman of the APGC, Dr. Joy Ogaji, commended the government’s move, describing it as a crucial step toward stabilizing the electricity market. She noted that the non-payment of debts has long hindered GenCos’ capacity to operate efficiently and invest in new infrastructure.

Industry analysts have welcomed the committee’s formation as a positive development, emphasizing that resolving the sector’s financial challenges is key to achieving stable and reliable power supply nationwide.