Nigeria's Power Sector Finally Gets a Boost Thanks to President Bola Ahmed Tinubu's Bold Plan
President Bola Ahmed Tinubu has given the green light to a groundbreaking 3.3 trillion payment plan aimed at wiping out lingering debt in Nigeria's power sector, a move that's expected to turn the tide on electricity supply and win over investors. According to presidential spokesperson Bayo Onanuga, the decision stems from a thorough review of debts accumulated between February 2015 and March 2023 under the Presidential Power Sector Financial Reforms Programme. After a thorough verification process, a whopping 3.3 trillion has been agreed upon as a full and final settlement, ensuring a fair and transparent resolution.
Implementation of the plan is already underway, with 15 power generation companies signing agreements worth a staggering 2.3 trillion. At the same time, 501 billion has been secured, with a significant 223 billion already disbursed. Olu Arowolo-Verheijen, the President's Special Adviser on Energy, believes this initiative will bring much-needed stability to the entire power value chain. "This programme is not just about paying off old debts," she explained. "It's about restoring confidence across the power sector, ensuring gas suppliers get paid, power plants can operate continuously, and the system starts working more reliably."
As part of a broader set of reforms, the government is introducing improved metering systems and service-based tariffs, where households pay for the quality of electricity
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