President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle decades-old debts in Nigeria's power sector. The announcement, made in a State House press release on Sunday, forms part of the Presidential Power Sector Financial Roadmap aimed at stabilising the electricity supply chain. The government stated the move is intended to clear legacy debts owed to gas suppliers, generation companies, and foreign contractors. According to the release, clearing these obligations should improve gas supply to power plants and boost generation capacity. The plan also includes restructuring interventions to attract private investment and ensure cost-reflective electricity tariffs. The Federal Government said the reforms are critical to ending the cycle of underperformance in the sector. No timeline was given for the full disbursement of the funds.
Tinubu's approval of a ₦3.3 trillion payout to settle power sector debts shifts the burden to future budgets, with no clarity on how the funds will be sourced. If past interventions are any guide, debt clearance alone will not fix Nigeria's power problems without strict oversight and structural fixes. The real test lies in whether gas suppliers and generation companies deliver improved output once paid. Nigerians may see little change if the same inefficiencies persist downstream.
