President Bola Tinubu has approved a ₦3.3 trillion financial intervention aimed at resolving long-standing debts within Nigeria’s electricity sector, in a move expected to stabilise power supply and rebuild investor confidence.
The approval follows a comprehensive review of liabilities accumulated over nearly a decade under the government’s power sector reform programme, covering the period from 2015 to early 2025. Officials say the agreed sum represents a final settlement designed to bring clarity and transparency to the sector’s financial obligations.
Authorities confirmed that implementation is already underway, with several generation companies signing agreements valued in trillions of naira. Initial funding has been secured, and partial payments have begun, signalling early progress in the execution phase.
Energy experts within the administration describe the initiative as a strategic reset rather than just a debt repayment exercise. By clearing outstanding obligations, the government aims to improve liquidity across the electricity value chain, ensuring that power producers, gas suppliers, and distributors can operate more efficiently.
The reform is also tied to broader structural changes in the sector, including improved metering systems and pricing models that align electricity tariffs with service quality. Officials believe these measures will encourage efficiency while protecting consumers.
In addition, the government is prioritising electricity supply to key sectors such as manufacturing and small businesses, where stable power is critical for productivity and economic growth.
Nigeria’s power sector has long struggled with inadequate generation capacity, frequent grid failures, and widespread outages. Analysts estimate that unreliable electricity costs the country billions of dollars annually, as businesses rely heavily on alternative energy sources to remain operational.
With the new payment plan in motion, the government says the next phase of reforms will commence soon, focusing on sustaining improvements and ensuring long-term stability in electricity supply nationwide.
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