Eight of Nigeria’s biggest power generation companies have signed onto President Bola Ahmed Tinubu’s ₦3.3 trillion debt settlement plan. Marking a major step toward stabilising the country’s struggling electricity sector.
Major Power Firms Back Debt Settlement Plan
Leading operators, including Transcorp Power, Egbin Power, and Geregu Power Plc, are among the generation companies (GenCos) backing the Federal Government’s intervention aimed at clearing long-standing debts. The agreement forms part of the Presidential Power Sector Financial Reforms Programme. Designed to resolve liabilities accumulated between 2015 and 2025.
According to official data, at least 15 power plants have already signed settlement agreements worth about ₦2.3 trillion. With the government raising over ₦501 billion to kick-start payments. So far, ₦223 billion has been disbursed, with further payments ongoing.
The move expected to address the liquidity crisis that has plagued the sector for years. Where GenCos struggled with unpaid invoices, limiting their ability to maintain operations and generate electricity efficiently.
Hope for Stability, But Concerns Remain
Industry experts say the deal could significantly improve cash flow across the power value chain, ensuring that power generation companies and gas suppliers are paid on time. This, in turn, expected to boost electricity generation and reduce persistent outages affecting homes and businesses.
However, some stakeholders have raised concerns about transparency and the accuracy of the debt figure, calling for clearer reconciliation to avoid disputes.
Nigeria’s power sector has long burdened by structural issues, including under-collection of revenue, inadequate metering, and tariff gaps. Analysts believe that while the ₦3.3 trillion settlement is a major intervention, sustained reforms and accountability will be crucial to achieving lasting stability.
If fully implemented, the agreement could restore investor confidence, unlock new funding. And set the stage for a more reliable electricity supply across the country.
