Tinubu Approves N3.3 Trillion Power Sector Debt Plan

President Bola Tinubu has approved a plan to settle N3.3 trillion in longstanding debts within Nigeria's power sector, a move aimed at stabilizing electricity generation and restoring confidence across the industry. The announcement, detailed in a statement from Bayo Onanuga, Tinubu's Special Adviser on Information and Strategy, covers liabilities accumulated from February 2015 to March 2025 under the Presidential Power Sector Financial Reforms Programme.

The debts, verified by the federal government as a full and final amount, stem from unpaid subsidies and obligations following the sector's privatization in 2013. These include payments to power generation companies for electricity supplied, capacity charges, and costs related to gas supplies, which form about 75 percent of the total. The liquidity crisis has persisted due to non-cost-reflective tariffs, inefficiencies in metering and billing by distribution companies, and structural imbalances where generation costs exceed consumer revenues. The Nigerian Bulk Electricity Trading Plc has served as an intermediary, absorbing subsidies that led to the buildup of arrears.

Implementation of the settlement has begun, with 15 power...