Tinubu Approves ₦3.3 Trillion Debt Settlement To Boost Electricity Supply In Nigeria
President Tinubu approved ₦3.3 trillion to settle power sector debts, aiming to stabilize electricity supply and attract investment.Summary
President Bola Tinubu has authorized a ₦3.3 trillion debt settlement plan for Nigeria’s power sector through the Presidential Power Sector Financial Reforms Programme, addressing liabilities accumulated between February 2015 and March 2025. Fifteen power generation companies have already signed settlement agreements totaling ₦2.3 trillion, with ₦223 billion of the initial ₦501 billion disbursement already released.
This initiative aims to stabilize electricity generation capacity, improve reliability for consumers, and resolve financial bottlenecks hindering investment and job creation within the sector. According to Olu Arowolo-Verheijen, Special Adviser to the President on Energy, the program is about restoring confidence in the power sector by ensuring payments to gas suppliers and power plants.
The government is also implementing broader reforms, including improved metering and service-based tariffs, alongside prioritizing electricity access for businesses to stimulate economic growth. President Tinubu has praised the collaborative effort and announced the upcoming 'Series II' phase of the program, signaling a continued commitment to resolving legacy issues and enhancing Nigeria’s power infrastructure.
(Source：Naija News)