FG’s Electrical energy Debt Jumps by N800bn, Senate Raises Concern

The Senate Committee on Energy has raised considerations over the liquidity disaster bedeviling the ability sector, lamenting that the tariff shortfalls within the trade have indicated that the federal government owes about N200bn to electrical energy producing corporations each month.

The committee disclosed that since this 12 months, the federal government has not paid the ability producers, and that this has raised the debt to about N800bn.

The Chairman of the Committee, Senator Enyinnaya Abaribe, disclosed this whereas fielding questions from journalists throughout a retreat held in Ikot-Ekpene, Akwa Ibom State, on Saturday.

The retreat, organised by the Nigerian Electrical energy and Regulatory Fee, was to proffer options to important and rising points within the Nigerian Energy sector.

Abaribe expressed worries that the federal government has but to make any cost to the ability companies this 12 months, indicating that the nation is already indebted by N800bn, along with earlier indebtedness amounting to over N3tn

“I will be unable to simply, on this quick interview, provide the statistics of these items. However there’s one key statistic that could be very, very obligatory for Nigerians to know. There’s a liquidity disaster within the energy sector. The producing corporations are owed a lot, the distribution corporations are additionally owed a lot.

“The tariff shortfall that we’ve signifies that each month the federal government owes N200bn of funds, and for this 12 months, 2025, no cost has been made. In different phrases, we’re already quick by N800bn. Earlier than this time, we had about N3tn debt to the producing corporations. The producing corporations owe the gasoline suppliers. The gasoline suppliers can not simply proceed to provide gasoline indefinitely,’’ Abaribe mentioned.

The Senator, nevertheless, expressed the hope that there’s mild on the finish of the tunnel.

“The hope is that this: a choice have to be taken by the Federal Authorities and the state governments as a result of proper now, we’ve two tiers of electrical energy markets. The state can do it, the Federal Authorities can do it, so they have to all come collectively and make that call.

“How can we get out of this? How can we pay for it? Who pays? And so forth, in every single place else on the planet, that call is at all times taken. Can we determine to subsidise gasoline that all of us use to run round, or can we see the choice to subsidise electrical energy that goes to everybody of us when it comes to manufacturing. In order that’s our option to make,” he said.

The Minister of Energy, Adebayo Adelabu, whereas giving an outline of the ability sector reforms, highlighted the achievements of the President Bola Tinubu-led administration, particularly within the space of a rise in energy era.

He additionally listed the challenges of the sector to incorporate funding paucity and vandalism of vitality gear, amongst others, saying “solely on this nation are vitality gear being vandalised in such magnitude.”