FG Rolls Out ₦3.3 Trillion Debt Settlement to Revamp Nigeria’s Power Industry

The Federal Government has unveiled a massive financial intervention aimed at resolving long-standing liabilities in Nigeria’s electricity sector, with President Bola Tinubu approving a ₦3.3 trillion settlement package.

The initiative is designed to clear accumulated debts owed to key players across the power value chain, spanning nearly a decade. Authorities say the figure represents a final agreement reached after a thorough verification process to address financial obligations that have weighed heavily on the sector.

Implementation of the plan is already underway, with several electricity generation companies entering into agreements valued at over ₦2 trillion. Initial funding has also been secured, and part of the money has begun to flow to beneficiaries as the government moves to restore stability in the industry.

Officials believe settling these obligations will improve cash flow within the sector, ensuring that power producers and gas suppliers are paid promptly. This, in turn, is expected to enhance electricity generation and reduce persistent supply disruptions across the country.

Beyond debt repayment, the reform effort includes broader measures such as improving metering systems and linking tariffs more closely to service quality. The government also plans to prioritise electricity supply to businesses and industries to stimulate economic growth and job creation.

According to energy advisers, the overall goal is to rebuild investor confidence, strengthen operations across the power chain, and deliver more consistent electricity to homes and enterprises nationwide.