Power Sector Reform Gains Momentum As Tinubu Approves ₦3.3trn Debt Settlement Plan To Boost Electricity Supply

President Bola Tinubu has approved a ₦3.3 trillion plan to settle outstanding debts in Nigeria’s power sector, aiming to restore stability and boost electricity supply. The initiative, a key part of the Presidential Power Sector Financial Reforms Programme, addresses legacy debts accumulated between February 2015 and March 2025, totaling ₦3.3 trillion after verification. Fifteen power generation companies have already signed settlement agreements worth ₦2.3 trillion, and the government has disbursed ₦223 billion of the initial ₦501 billion mobilized.

Experts believe this financial injection will remove bottlenecks hindering electricity production and distribution, ensuring gas suppliers and power plants can operate effectively. The program extends beyond debt repayment to include restoring operational efficiency and trust within the sector, alongside the rollout of improved metering and service-based tariffs. These complementary reforms aim to reduce billing disputes and enhance accountability.

The government is prioritizing a stable electricity supply for critical sectors like industry and manufacturing, expecting increased productivity and job creation. President Tinubu praised the cooperation of stakeholders and announced the upcoming 'Series II' phase of the program, signaling continued commitment to power sector reform. The initiative is widely seen as a significant step towards a more reliable and efficient electricity system in Nigeria.

(Source：Thewill News)