N1.23trn paid towards power sector debt: what it could mean for your electricity supply

Power Minister Joseph Tegbe says the federal government has now paid N1.23 trillion of the money owed to electricity generation companies, a debt he linked to gas supply problems at power plants. He also announced three grid upgrade projects. The news comes as Ikeja Electric apologises to some Band A customers in Lagos for missing the promised 20 hours of supply a day.

Speaking after the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu in Abuja on Wednesday 28 October, Tegbe said: “So far, we have been able to pay N1.23tn out of the N3.3tn debts owed to the GenCos, which has been considered a challenge in respect of the supply of feedstock gas,” Punch reported. TheCable reported the total owed to power sector operators as N2.3 trillion. The N1.23 trillion matches two bond issues under the government's N4 trillion power sector debt programme – about N501bn in January and about N729bn in the latest round – part of it paid as cash raised from investors and part as bonds handed directly to the generation companies, Daily Trust reported.

FEC also approved three transmission projects, according to Punch and TheCable: work at the Katampe substation in Abuja, which serves the North Central region; three new 300MVA transformers for the Egbin substation serving the Lagos axis; and upgrading the 35.6km line between McPherson and Shagamu from a single to a double circuit. Tegbe said the transformers are custom-built and take three to six months to make.

The minister said the government wants to raise the grid's transmission capacity from about 5,000 megawatts to about 19,000 megawatts, which he said could happen within two years if planned works, including an east-west “super grid”, go ahead. He said a technical audit of power infrastructure is under way, a new national control centre is being built in Osogbo to replace one built 64 years ago, and more than 300 containers of power equipment left at the ports, some for up to 20 years, are being cleared.

For many households, supply remains patchy. On 27 October Ikeja Electric apologised to customers on several Band A feeders, which are meant to get at least 20 hours of power a day, for falling short on 25 and 26 October, TheCable reported. Five feeders in Shomolu recorded zero hours on both days, with the company citing panel replacement work, grid instability, transformer limits and faults.

Pidgin: Minister of Power Tegbe talk say Federal Government don pay N1.23 trillion from the money wey dem owe power generation companies, because that debt dey affect gas supply to power plants. FEC also approve three projects to improve transmission for Abuja and Lagos side. But some Band A customers for Lagos still no see light for two days last weekend.

How this affects you: Nothing changes on your bill or supply hours straight away. The payment is meant to help power plants buy gas, and the approved grid works will take months, so any improvement will be gradual. If you are on Band A and get less than 20 hours a day, keep a record and check your DisCo's notices and compensation channels, and report persistent shortfalls to NERC.