Wale Edun, Minister of Finance and Coordinating Minister of the Economy, says he has submitted a proposal to the Federal Executive Council (FEC) aimed at settling the federal government’s ₦4 trillion debt to power generation companies(GenCos).
Speaking at the State House on Wednesday, August 13, after a council meeting chaired by President Bola Tinubu, Edun explained that his presentation focused on a plan to refinance outstanding liabilities in the electricity sector amounting to ₦4 trillion.
“I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion,” Edun 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 explained that the first phase of the debt resolution process is expected to be completed within three to four weeks, marking a major step toward clearing the outstanding ₦4 trillion owed to GenCos.
He noted that refinancing, replacing an existing debt with a new one, will be used to address the obligation.
In April 2025, GenCos warned that the mounting unpaid debt, comprising ₦2 trillion for 2024 and ₦1.9 trillion in legacy liabilities, was threatening their operations.
Earlier in May, Minister of Power Adebayo Adelabu had indicated that the federal government might resort to borrowing to offset part of the debt.
Edun also revealed that the federal government is seeking a $125 million facility from the Islamic Development Bank (IsDB) to finance infrastructure projects in Abia State.
The loan will cover the construction of approximately 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 added.
Edun stated that the funding would upgrade vital road links between Umuahia and Aba, improving transportation flow and stimulating economic growth in the area.
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