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Abuja – The Federal Authorities is racing towards time to settle a staggering N4.7tn debt owed to electrical energy technology corporations (Gencos) amid warnings of an imminent nationwide energy collapse, The Bureau Newspaper can authoritatively report.
Sector in Disaster
Energy stakeholders reveal that:
Gencos battle to function vegetation because of unpaid invoices
Gasoline suppliers threaten provide cuts over mounting money owed
Month-to-month debt grows by N200bn as funds lag
Solely 28% of 2024 invoices (N762bn of N2.7tn) have been settled
Minister of Energy Adebayo Adelabu, by means of spokesperson Bolaji Tunji, assured that “no plant will shut down,” citing ongoing interventions. Nonetheless, trade insiders paint a grimmer image.
Debt Breakdown
Legacy Debt: N2tn accrued pre-2024
2024 Subsidy Shortfall: N1.9tn (Gencos) + N450bn (Discos)
Present Month-to-month Deficit: N200bn added to pile
Era Firms Bleeding
Transcorp Energy CEO Owen Omogiafo disclosed:“We’re owed N650bn for energy already generated. Our 2,000MW capability now delivers simply 1,000MW because of liquidity constraints.”
APGC Govt Director Dr. Pleasure Ogaji confirmed: “The N4.7tn liquidity disaster threatens operational sustainability.”
Domino Impact
Gasoline Provide Cuts: Suppliers issued December 2024 suspension notices
DisCo Collateral Harm: Navy/MDA money owed (e.g., N4bn Air Power arrears) choke remittances
Investor Flight: New capability investments stall
Authorities’s Stopgap Measures
Whereas the 2024 energy funds stands at N900bn – a fraction of the debt – the Ministry claims:
Prioritizing legacy debt clearance
Negotiating with fuel suppliers
Exploring different financing
Sector Analysts Warn
Repeat of Q1 2024 blackout doubtless with out rapid cost
Present assortment effectivity (77.4%) inadequate for sector viability
Subsidy mannequin unsustainable amid rising consumption
Stakeholder Reactions
Discos: Blame non-paying authorities companies for value-chain disruption
Gencos: “Ebook income on paper whereas awaiting phantom funds”
NERC: Monitoring however but to implement cost ensures
What Subsequent?With the nationwide grid’s stability hanging within the stability, observers await:
FG’s concrete compensation roadmap
Potential emergency funding from CBN
Structural reforms to forestall recurrence
The ability sector’s survival now hinges on pressing fiscal intervention to avert an financial shutdown.
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