Home Business FG approves payment of N26bn owed Discos

FG approves payment of N26bn owed Discos

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The Federal Government on Wednesday approved the payment of N25.994bn being debts owed by Ministries, Departments and Agencies to electricity distribution companies.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, told State House correspondents after a meeting of the Federal Executive Council presided over by President Muhammadu Buhari at the Presidential Villa, Abuja that since the inception of the incumbent administration, claims of debts owed by government to DISCOS have been a matter of concern, especially in the light of liquidity issues.

Fashola said the government had earlier agreed that it would only pay verified sums after proper verification is done.

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He said, “We have concluded the verification and we now ask council to approve the verified sum of N25.994bn owed by MDAs of the Federal Government to be paid to the DISCOS out of the claims of N67.41bn.

“So, there is a differential of about N41bn. That differential arises first because some of the claims do not belong to the Federal Government. Some are owed by states and local governments. Also, some belong to public international organisations and were classified as government debts.

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“So, there is more verification going on and undertaking at states and local governments which we have discovered at the National Council on Power about a week ago. This is important so that government can demonstrate its support for the private sector by paying its own debts so that the sector can do what they do well.

“Government has also approved that this amount that has been quantified be set off against the amount owed by the DISCOS to Nigerian Bulk Electricity Trader, a 100% Federal Government-owned subsidiary company. They also owe government for their unremitted collections for energy they have taken and have not remitted. They are owing government about N500bn.”

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