Tinubu approves N3.3trn power sector debt settlement
President Bola Tinubu has approved a N3.3 trillion payment plan to settle outstanding debts in Nigeria’s electricity sector under the Presidential Power Sector Financial Reforms Programme. The statement from the President’s Special Adviser, Bayo Onanuga, said the decision follows a final review of legacy debts dating from February 2015 to March 2025. After verification, ₦3.3 trillion was agreed as full settlement. Implementation has begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The government has raised ₦501 billion so far, disbursing ₦223 billion.
This intervention addresses persistent electricity shortages that force households and businesses to rely on generators and solar alternatives. Grid collapses multiple times this year have left millions without power, increasing operating costs and consumer prices. The Nigeria Labour Congress previously opposed such bailouts, calling a reported N6 trillion demand a "clandestine scheme" and accusing the government of plunder. NLC President Joe Ajaero said, "This is not economics; this is plunder."
The government expects the debt settlement to improve liquidity across the power value chain and enhance generation. Special Adviser on Energy, Olu Arowolo-Verheijen, stated that timely payments to gas suppliers and GENCOs will stabilize operations and improve service delivery. Reforms include improved metering and service-based tariffs, with priority on power supply to industries and small enterprises for economic growth. Series II of the programme starts this quarter.
With this N3.3 trillion injection, will you invest in grid-dependent appliances, double down on solar backups, or wait for improved reliability before expanding your business?