Tinubu Approves ₦3.3 Trillion Power Debt Settlement Plan
President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle legacy debts accumulated in Nigeria’s power sector from February 2015 to March 2025, aiming to improve electricity supply and restore investor confidence. The Federal Government confirmed the plan follows a verification process and represents a full and final settlement. Implementation has already begun, with 15 power generation companies signing agreements worth ₦2.3 trillion. So far, ₦501 billion has been raised for the initiative, with ₦223 billion already disbursed and further payments ongoing. Special Adviser on Energy, Olu Arowolo-Verheijen, stated the programme goes beyond debt clearance to restore confidence across the value chain, ensuring gas suppliers are paid and power plants operate reliably. It is part of broader reforms including improved metering and service-based tariffs, with a focus on prioritising power supply for businesses and industries to support job creation and economic growth. The presidency expects the settlement to enhance liquidity, leading to more stable generation and better service delivery, with the next phase (Series II) starting this quarter. Nigeria’s power sector has been plagued by grid collapses and low generation, with the Africa Trade Barometer reporting annual economic losses of $26 billion from power failures, plus $22 billion spent by businesses on off-grid fuel. This initiative targets systemic issues affecting households and enterprises nationwide. Will this debt settlement actuallytranslate to more reliable electricity for your home or business, or will systemic challenges persist?