ghetto News Report
Tinubu Approves ₦4 Trillion Bond to Settle GENCOs’ Debts
ghetto News Update
President Bola Tinubu has approved a ₦4 trillion bond programme to settle longstanding debts owed to power generation companies (GENCOs), dating back to 2015. This was disclosed during a meeting with GENCO representatives at the Presidential Villa in Abuja.
Key Highlights:
- Presidency’s Commitment: Tinubu acknowledged the inherited debts but insisted they must be verified through proper audits. He emphasized transparency, patience, and fairness in resolving the sector’s liquidity crisis.
- Verification Underway: Out of the ₦4 trillion claimed by GENCOs, the government—through NBET—has validated ₦1.8 trillion so far. The final amount may be lower after full validation.
- Appeal for Patience: Tinubu urged GENCOs and financial institutions to give the government time to validate debts, while also discouraging asset foreclosures.
- Liquidity Challenges: Presidential Energy Adviser Olu Verheijen blamed the crisis on unfunded tariff shortfalls and market deficits built over a decade.
- Future Steps: The ₦4 trillion bond, though approved in principle, is subject to negotiation and verification, and will only cover valid debts as confirmed by the Debt Management Office (DMO).
- Policy Direction: Tinubu reiterated his belief in a market-driven electricity sector and affirmed commitment to alternative energy solutions like CNG to reduce costs and improve supply.
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