Senate Raises Alarm over FG’s N200bn Monthly Debt in Power Sector

The Nigerian Senate has expressed deep concern over the deteriorating financial condition of the country’s power sector, revealing that the federal government currently owes N200 billion every month due to persistent shortfalls in electricity tariffs.

Senator Enyinnaya Abaribe, chairman of the Senate Committee on Power, disclosed this on Saturday during a media briefing at a legislative retreat in Ikot Ekpene, Akwa Ibom State.

He stated that the government has not made any payments to the electricity distribution companies in 2025, resulting in the accumulation of fresh debts amounting to N800 billion in just four months.

The retreat, which was organised in collaboration with the Nigerian Electricity Regulatory Commission, was convened to address the growing challenges in the sector and explore strategies for reform.

According to Senator Abaribe, the electricity industry is facing a deepening liquidity crisis, with both generation and distribution companies struggling to remain afloat under the weight of unpaid bills.

He noted that the government’s failure to close the gap between actual electricity costs and what is paid by consumers has left the sector in a financially unsustainable position.

He warned that the already existing debt in the sector, which has now exceeded N3 trillion, is being compounded by the failure to honour monthly obligations.

He emphasised that the N200 billion monthly shortfall must be urgently addressed if the sector is to avoid a total collapse.

The Senate is now seeking legislative solutions to force a more sustainable financial model in the power sector, including mechanisms to ensure that tariff subsidies are backed by timely government funding.

Senator Abaribe stressed the importance of bridging the gap between generation costs and what consumers are charged, without overburdening the public or jeopardising the operations of service providers.