Tinubu okays ₦3.3tn to clear power sector debts, improve electricity

President Bola Tinubu has approved a ₦3.3 trillion intervention aimed at clearing outstanding debts in Nigeria’s power sector, in a move designed to stabilise the industry and improve electricity supply nationwide.
The initiative targets long-standing financial obligations within the energy value chain, including debts owed to generation companies (GenCos), gas suppliers and other key stakeholders. Officials say addressing these liabilities is critical to restoring confidence and ensuring smoother operations across the sector.
According to sources, the intervention is expected to enhance liquidity, boost power generation and improve transmission and distribution efficiency. It is also seen as a step toward reducing frequent outages and strengthening overall electricity reliability.
Stakeholders have long argued that unresolved debts have hindered investment and operational capacity in the sector, making reforms difficult to sustain.
Analysts note that while the approval signals strong commitment to reform, effective implementation and transparency will be crucial in ensuring the funds deliver measurable improvements for consumers.
Observers say the move could mark a significant turning point if accompanied by broader structural reforms and consistent policy execution.