In a significant move to stabilize Nigeria’s electricity sector, President Bola Tinubu has approved a N3.3 trillion payment plan aimed at settling outstanding debts that have plagued the industry for over a decade. These debts, which accumulated between February 2015 and March 2025, have created a challenging environment for power generation companies and have hindered the overall reliability of electricity supply in the country.

The implementation of this debt settlement plan has already begun, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. This initial step is crucial as it signals a commitment to restoring financial health within the sector. To support these payments, the federal government has successfully raised ₦501 billion, with ₦223 billion already disbursed to relevant stakeholders.

Olu Arowolo-Verheijen, a key figure in the initiative, emphasized the broader goals of the program, stating, “This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably.” This sentiment reflects the urgent need for a more dependable power supply, which is essential for both households and businesses.

The debt settlement plan is expected to enhance liquidity across the power value chain, thereby improving electricity generation and distribution. The initiative also includes provisions for improved metering and service-based tariffs, which will be linked to the quality of electricity supply. This approach aims to create a more transparent and efficient system that can better meet the needs of consumers.

Moreover, the government is prioritizing power supply to industries, businesses, and small enterprises as part of its strategy to foster economic growth. The Nigeria Labour Congress has expressed criticism regarding the financial demands from power generation companies, highlighting the tension between labor interests and the financial realities of the sector.

Historically, the challenges within Nigeria’s power sector have significantly increased operating costs for businesses. Many companies have had to pass these additional costs onto consumers, resulting in higher prices for goods and services. This cycle of inefficiency has underscored the necessity for a comprehensive reform of the electricity sector.

Looking ahead, the next phase of the programme, referred to as Series II, is set to commence this quarter. This phase will likely build on the initial successes of the debt settlement plan and aim to further enhance the operational capabilities of the power sector. However, details remain unconfirmed as stakeholders await further announcements from the government.

Сообщение Tinubu approves electricity debt plan: How has Tinubu approved the electricity debt plan in Nigeria? появились сначала на naijanewsreporters.