FG approves the refinancing plan of the N4TRN electrical sector sector

The Federal Government (FG) has approved a gradual plan to refinance N4 trillion of Naira ($ 2.61 billion) in the debt of the electrical sector to help stabilize the nation’s sick power industry and improve the offer, said its finance minister.

The debt, mainly due to 27 energy generation companies for exceptional invoices between 2015 and 2023, suffered investments in the sector and aggravated the chronic current interruptions in the most populous nation in Africa.

President Bola Tinubu He undertook to resolve requests following a recent verification. He approved the plan Wednesday.

Speaking after a cabinet meeting in the capital Abuja, Finance Minister Olawale Edun said that the refinancing would have been carried out within three or four weeks under the supervision of the debt management office.
“It is now completely approved and we move to implementation,” said Edun.

The plan will probably involve the issue of bonds and other tools to spread the responsibility for reimbursement over time.

This is aligned with larger reforms in the sector, including a 35 % cut in electricity subsidies and tariff increases for urban consumers, measures that should save the government around n1.1 trillion, or about 718.58 million dollars, every year.