President Bola Ahmed Tinubu has approved a ₦3.3 trillion debt settlement plan to address long-standing financial liabilities in Nigeria’s power sector and improve electricity supply nationwide.
The intervention targets legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After a detailed verification process, the government adopted ₦3.3 trillion as a full and final settlement to resolve the sector’s chronic liquidity crisis.
Don’t Miss This: Ghana’s Inflation Drops to 3.2% in March, 15th Month of Continuous Decline
Implementation is already underway, with fifteen power generation companies signing settlement agreements valued at approximately ₦2.3 trillion. This signals early progress in restoring financial balance across the electricity value chain.
To support the rollout, the Federal Government has raised about ₦501 billion so far, with roughly ₦223 billion already disbursed while additional payments continue.
The core objective of the plan is to restore liquidity to the sector, particularly by ensuring that generation companies and gas suppliers receive overdue payments.
This is expected to stabilise electricity generation, reduce disruptions linked to funding shortfalls, and improve operational efficiency.Nigeria’s power sector has struggled for years with structural inefficiencies, including insufficient generation relative to demand, gas supply constraints, mounting debts owed to power producers, and recurring grid instability.
Don’t Miss This: Ghana’s Inflation Drops to 3.2% in March, 15th Month of Continuous Decline
Average generation has remained around 4,300 megawatts, significantly below national requirements.By resolving these debts, the government aims to rebuild investor confidence, strengthen the financial viability of the sector, and create conditions for more reliable electricity supply to households and businesses.
The reform also complements ongoing efforts around metering and tariff structures tied to service delivery.The presidency indicated that a second phase of the reform programme will commence within the current quarter, signaling a continued push to overhaul Nigeria’s electricity market and address systemic challenges.
Source: Nairametrics
