The Federal Government has paid ₦1.23 trillion out of the ₦3.3 trillion debt owed to electricity generation companies (GenCos), as part of efforts to address financial challenges affecting Nigeria’s power sector.
The Minister of Power, Joseph Tegbe, disclosed this on Wednesday, October 28, 2026, while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
According to the minister, the government is working to improve liquidity across the electricity value chain while implementing measures to strengthen the national grid and improve the reliability of power supply.
The outstanding debt has been a major concern for electricity sector operators, particularly because financial constraints can affect the ability of generation companies to meet their obligations to gas suppliers and maintain adequate electricity generation.
Tegbe explained that the government’s debt repayment efforts were being complemented by plans to expand transmission infrastructure and improve the capacity of the national electricity network.
FG Plans to Increase Transmission Capacity
The minister said the government intends to increase the country’s transmission wheeling capacity from approximately 5,000 megawatts to about 19,000 megawatts over the next two years.
Achieving this target would require substantial investment in transmission lines, substations, transformers and other supporting infrastructure.
Tegbe said the government was pursuing projects designed to strengthen the grid and improve its ability to transmit electricity from generation facilities to distribution networks.
Among the projects approved by the Federal Executive Council is the construction of underground and overhead transmission lines at the Katampe Transmission Substation in Abuja.
The council also approved the design, manufacture and supply of three 300-megavolt-ampere power transformers for the Egbin Transmission Substation, an important facility serving the Lagos electricity network.
Another approved project involves reconstructing and upgrading the 35.6-kilometre McPherson–Shagamu 132-kilovolt transmission line from a single-circuit to a double-circuit arrangement.
The upgrade is expected to improve the line’s electricity-carrying capacity along the Lagos–Shagamu corridor.
Government Moves to Recover Abandoned Power Equipment
Tegbe also disclosed that President Tinubu had directed the clearance of more than 300 containers of power equipment abandoned at ports across the country.
Some of the containers have reportedly remained at the ports for as long as 20 years.
The Ministry of Power is expected to work with the Nigerian Ports Authority and the Nigeria Customs Service to facilitate their clearance.
According to the minister, technical experts will inspect the equipment to determine which items remain usable. Equipment suitable for deployment will be considered for installation in the electricity network, while obsolete materials will be disposed of appropriately.
The initiative could help the government determine whether equipment already imported into the country can contribute to ongoing infrastructure rehabilitation.
The minister also said a technical audit of Nigeria’s power infrastructure was underway. The exercise covers three major energy zones: the Lagos–Ibadan axis, the Abuja–Kaduna–Karu corridor, and the Benue–Enugu–Port Harcourt corridor.
The audit is intended to identify ageing infrastructure and areas requiring replacement or urgent intervention.
Challenges Remain in the Power Sector
Despite the announced repayment and infrastructure plans, Nigeria continues to face longstanding electricity-sector challenges involving funding, transmission constraints, gas supply and the maintenance of existing facilities.
The proposed increase in transmission capacity will require sustained investment and effective project implementation.
For consumers and businesses, the potential benefits will depend on whether improvements across generation, transmission and distribution translate into more reliable electricity supply.
The government’s next steps will therefore be important in determining how quickly the announced projects can improve the performance of the national grid.
