Nigeria has approved a ₦3.3 trillion debt settlement plan aimed at resolving over a decade of financial strain in the country’s power sector and restoring more reliable electricity supply.
The approval, granted by President Bola Ahmed Tinubu, follows a comprehensive review of legacy liabilities accumulated between 2015 and 2025, with the total sum agreed as a full and final settlement, as stated in official government communications, according to the Star.
Implementation is already underway, with 15 power generation companies signing agreements worth about ₦2.3 trillion, while the government has raised ₦501 billion to kickstart payments, of which ₦223 billion has been disbursed, according to statements from the presidency .
BusinessDay says the intervention is designed to restore liquidity across the power value chain, ensuring that gas suppliers are paid, power plants can operate consistently, and overall system reliability improves after years of underperformance caused by unpaid debts .
