Finance Ministry Assures Timely Payments to Energy Sector, Declares End to Uncontrolled Debt
The Ministry of Finance has reassured the public and key industry stakeholders that sufficient budgetary allocations have been made to ensure consistent and timely payments to energy sector players moving forward.
In a statement issued on January 12, 2026, the Ministry emphasized that the government is committed to restoring financial discipline in the sector, marking a clear break from past practices.
“The era of uncontrolled energy sector debt accumulation is over,” the Ministry declared, highlighting that proactive measures and improved revenue management have been put in place to prevent future arrears.
The assurance comes amid ongoing efforts to stabilize the power sector, reduce financial strain on independent power producers (IPPs), fuel suppliers, and other service providers, and ultimately improve electricity supply reliability for households and businesses.
The Ministry further indicated that the current fiscal framework, supported by prudent expenditure controls and enhanced domestic revenue mobilization, will prioritize the energy sector to avoid disruptions.
The announcement has been welcomed by industry players who have long advocated for regular payments to maintain operational efficiency and investor confidence.
This development aligns with the government’s broader economic recovery agenda, which includes strengthening fiscal responsibility and restoring trust in public financial management.
