Nigeria Nigeria to Clear N4trn Power Debt, Eyes $125m Loan for Roads

The Digest:

The Federal Government is moving to clear a N4 trillion debt owed to power generation companies (GenCos) as Minister of Finance, Wale Edun, submits a proposal to the FEC.

Key Points:

• Wale Edun presented a proposal to refinance N4 trillion GenCos' debt.
• GenCos have warned that the debt threatens their operations.
• The financing plan is now in the implementation phase.
• The FG is also seeking a $125 million loan from the Islamic Development Bank.
• The loan is for road infrastructure projects in Abia State.
• The loan will fund road construction in Umuahia and Aba.
• The minister hopes the projects will boost transport and economic activity.

These moves signal the government's strategy to address critical issues through financial restructuring and new loans.

Sources: TheCable