Joseph Bakare
Finance Minister, Wale Edun, has announced that the Federal Government has approved a plan to refinance its electricity sector debt of 4 trillion naira (2,61 billion dollars) to stabilize and improve the nation’s struggling power industry.
The debt, which is primarily due to 27 power companies, for unpaid invoices from 2015-2023, has hindered investment in the sector and worsened power outages.
President Bola Tinubu, has promised to settle all claims after a recent inspection which he approved on Wednesday.
After a cabinet session in Abuja, Edun, said that the refinancing will be carried out within three to four week under the supervision of the debt management offices.
Edun stated that the project is now approved and ready for implementation.
Plan will probably involve the issuance of bonds and other instruments in order to spread out repayment obligations over time.
The government expects to save around 1.1 trillion Naira ($718.58 million) annually. $1 = 1,530.8000 Naira