Nigeria plans to clear remaining power debts in 2027

Nigeria’s Minister of Power, Joseph Tegbe, said the federal government plans to clear the remaining legacy debts owed to electricity generation companies in 2027, after paying about N1.23 trillion through bonds. Tegbe announced the commitment at the Harvard Business School Association of Nigeria Energy Conference in Lagos. The reported payments and the plan to settle the balance were described by the minister; the amount still outstanding was not specified in the reports. He said the government also intended to prevent new arrears from building up in the power sector. Tegbe linked clearing the legacy obligations and avoiding further debt accumulation to efforts to attract investment and improve electricity supply to homes and businesses. The minister reiterated the government’s stated goal of providing a steady and reliable supply of electricity across Nigeria. He also said the government was committed to protecting vulnerable groups as it pursues that objective. The reports did not provide details of measures for that protection or specify how the planned debt settlement would be carried out.