In February, the Minister of Power, acknowledged , describing it as “crippling” to the sector’s performance.

Verheijen confirmed that both the Coordinating Minister of the Economy, and the Debt Management Office (DMO) have thrown their support behind the plan to settle a portion of the debts.

“Alternative debt instruments are being explored, given the Federal Government’s fiscal constraints. Internal approvals are currently underway,” she explained.

The move to pay the ₦2 trillion follows a recent warning from GenCos to the Federal Government, urging immediate action to prevent a total collapse of their operations.

Verheijen assured stakeholders that updates on the debt payments would be provided at the next NESI meeting.

Power Minister Adelabu had earlier pledged to resolve the debt crisis. In April, he promised that “all issues surrounding the debts will be addressed” to revive the sector’s financial health.

The Presidency’s commitment to pay half of the ₦4 trillion debt is expected to bring some relief to the GenCos, who have struggled with mounting arrears for years.