Power Sector on Brink of Collapse Without Urgent Debt Settlement, Minister Warns
Nigeria's power sector faces collapse due to over ₦2 trillion in unpaid debts, prompting the Minister of Power to call for urgent fiscal action and structural reforms.Summary
Nigeria's power sector is on the verge of systemic collapse due to over ₦2 trillion in unpaid debts across generation, transmission, and distribution companies. The Minister of Power, Adebayo Adelabu, warned that unresolved liabilities are eroding operational viability and discouraging investment. He called for the government to allocate budgetary surpluses to settle these debts and proposed the creation of a "Sector Debt Resolution Fund" to purchase non-performing obligations. Additionally, the minister urged the implementation of the Electricity Act reforms to strengthen oversight and streamline subsidy provisioning. Industry stakeholders have welcomed the call, emphasizing that without debt resolution, the sector risks widespread collapse, regional power outages, and capital flight. Experts stress that debt forgiveness alone is insufficient; broader regulatory reforms, including improved metering and digital monitoring, are essential for long-term sustainability.
(Source：Infostride)