Power Minister Adebayo Adelabu has revealed that the Federal Government owes electricity generation (GenCos) and distribution companies (DisCos) over ₦4 trillion in unpaid subsidies,
Breaking down the debt, he explained that:
• ₦2 trillion is owed to GenCos as legacy debt.
• ₦1.9 trillion is due as a 2024 subsidy for GenCos.
• ₦450 billion is owed to DisCos for 2024 subsidies.
Adelabu warned that the debt hampers electricity supply, urging a review of subsidy payments and market reforms. He also criticized DisCos for failing to invest in infrastructure and migrate customers to Band A services.
A new targeted subsidy model is expected to be introduced to assist low-income households.
