Nigeria’s minister of power, works and housing, Babatunde Fashola has said the federal government will only pay legally verifiable debts owed the power generation companies (GENCOS).

Bbatunde Fashola (SAN)

According to a report by Nation newspaper, the debts are estimated at several billions of naira incurred due to inability of the government to provide financial assistance to the firms, as contained in the Share Purchase Agreement signed with the companies during privatization.

Fashola stated this during a visit to Egbin Power Plant in Lagos.

He said the additional 220 Megawatt (MW) of electricity produced by the Egbin Power Plant, should be distributed to consumers, especially the high energy consumers like industries, on buyer- to- seller basis.





He said, “We will pay debts that are legally contracted and verifiable. Going forward also, we have said that as government, we must demonstrate the clear necessity for everybody that consumes power to pay for what they consume, and government will start by showing example. One of the first things I checked as minister of power was whether the ministry of power owed (power firms).

“I am happy to say that the Ministry of Power is not owing. Now, we are already planning to ensure that all other ministries, works and housing, bring up their books so that we can pay up whatever we are owing the power providers. And this, we expect, will demonstrate to other consumers including departments, commissions, military, security; everybody must pay what they have owed.”

Recall that while speaking during a press briefing in Abuja, Fashola said that he is planning to address housing deficits, provide good roads and increase power generation in Nigeria with extra 2, 000 megawatts.

According to the minister, the Lagos-Ibadan expressway and the second Niger Bridge are of great importance and would be given urgent attention by the current administration.

ok. I just feel d caption of this post is at variance with d body. Dia was no where he said Fg wont pay Gencos. He extoled d former minister of Power, Prof Nebo, for not leaving a hang over debt on d Ministry while promising to ensure oda ministries clear any back log in dia books. Fashola is indeed a good administrator who starts d clean up from his room. Just hoping to see improvement at user end.