FG Moves to Settle ₦4 Trillion GENCO Debt, Targets $125 Million Islamic Bank Loan for Abia Road Projects
Story: Written By SpringnewsNG Media Limited August 14,2025
The Federal Government has commenced plans to clear the ₦4 trillion debt owed to Power Generation Companies (GENCOs), in a bid to strengthen electricity supply across the country.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu in Abuja.
Edun explained that he presented a memo seeking approval to refinance the outstanding GENCO debt, which may involve issuing a bond under a refinancing arrangement—using new debt to settle existing obligations.
According to him, although the financing plan was only partially approved, implementation will begin immediately under the supervision of the Debt Management Office (DMO) and financial experts.
“The first phase should be completed within three to four weeks. This move will significantly advance efforts to resolve the debt challenge and improve power generation in Nigeria,” Edun said.
The GENCOs had earlier raised concerns that the government’s ₦4 trillion debt was crippling their operations and threatening stable electricity supply.
In addition, Edun revealed that the federal government is pursuing a $125 million loan from the Islamic Development Bank to fund critical road infrastructure in Abia State. The loan will cover the construction of a 35-kilometre road in Umuahia and a 126-kilometre road in Aba, the state’s commercial hub.
“These projects, once completed, will greatly enhance transportation, improve trade access, and boost economic activities across affected communities in Abia State,” the minister noted.
The Federal Government says both initiatives—the GENCO debt settlement plan and the Abia road projects—are part of broader economic reforms aimed at unlocking growth and improving infrastructure nationwide.
