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From Isaac Anumihe, Abuja
As part of measures to address the perennial power outages nationwide, President Bola Ahmed Tinubu has approved N3.3 trillion for the payment of debts incurred in the power sector over the past 10 years.
Also, to fast-track the disbursement of the approved funds, the sum of N550 billion has been paid to gas and generation companies, with a promise to settle the outstanding balance of the incurred debts.
Recall that chronic revenue shortfalls, largely due to non-cost-reflective tariffs and underfunded subsidies, had left generation companies unable to meet obligations to gas suppliers and maintain critical infrastructure.
The funds are expected to reverse the trend by settling legacy debts, restoring gas supply, and enabling improved plant maintenance — key factors in boosting electricity generation.
The Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Bolaji Tunji, said that the government had earlier issued a N501 billion bond to restore confidence and unlock growth across the electricity value chain.
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“This intervention is not just about settling debts; it is about resetting the foundation of the power sector. By restoring liquidity, enhancing bankability, and creating a more predictable investment climate, the government is laying the groundwork for sustainable growth and improved electricity supply,” he said, adding that the initiative, alongside targeted subsidies and tariff reforms, reflects a deliberate policy shift towards full commercialisation and long-term viability of the sector.
Industry stakeholders have described the programme as a “reset” of the electricity market, restoring trust and financial discipline while laying the groundwork for sustainable growth.
Early settlement agreements with generation companies and improved transmission capacity further reinforce the administration’s commitment to holistic sector reform.
The Special Adviser noted that while challenges such as transmission constraints and revenue adequacy persist, the bond initiative marks a critical turning point. It highlights a coordinated effort to move the sector away from systemic inefficiencies towards a more viable, investor-friendly model.
Meanwhile, as reforms continue to unfold, the N501 billion bond stands out as a cornerstone achievement — one that not only addresses immediate financial pressures but also cements the minister’s legacy as a reform-driven leader steering Nigeria’s power sector towards stability, growth, and the long-envisioned goal of a reliable electricity supply.
