The Federal Executive Council (FEC) yesterday approved N26 billion to facilitate the payment of accumulated debt owed electricity Distribution Companies (DISCOs) for power consumed by Ministries, Departments and Agencies (MDAs).
Minister of Power, Works and Housing, Babatunde Fashola told State House Correspondents after Council meeting, presided over by President Muhammadu Buhari that the amount was below the N70 billion claim by the DISCOs as debt owed them by the Federal Government.
He explained that the amount is expected to be deducted from the N500 billion which the companies are currently owing the Federal Government as its share of their electricity revenue earnings.
According to Fashola, the amount approved for payment by FEC is what has been verifiable after the claim by the DISCOS.
The minister argued that the electricity companies may have lumped up debts owned by some state governments and other organisations not owned by the Federal Government to have arrived at the N70 billion debt claim.