President Bola Tinubu has approved a N3.3 trillion payment plan to clear legacy debts in Nigeria's power sector, aiming to stabilise electricity supply across the country. The approval was confirmed in a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy. The plan targets long-standing financial obligations that have hindered operations and investment in the sector for years. Settlement of these debts is expected to improve cash flow to generation and distribution companies. The move is part of broader reforms to make the power sector more functional and attractive to investors. No specific timeline was given for the disbursement of the funds. The federal government described the intervention as critical to unlocking consistent electricity delivery to households and businesses nationwide.
Tinubu's N3.3 trillion commitment reveals the scale of financial rot inherited in the power sector, with years of unpaid obligations now requiring a single massive bailout. This sum, directed to an industry long starved of working capital, suggests that past reforms failed to establish sustainable financial discipline. For Nigerians, it means another round of hope for better electricity—this time backed by unprecedented financial outlay. Whether this translates to steady power or becomes another line item in a cycle of spending without results remains visible only in the coming months.
