{"id":98436,"date":"2026-04-07T07:31:39","date_gmt":"2026-04-07T07:31:39","guid":{"rendered":"https:\/\/everyday.ng\/?p=98436"},"modified":"2026-04-07T07:38:23","modified_gmt":"2026-04-07T07:38:23","slug":"tinubus-%e2%82%a63-3tn-power-sector-payout-elicits-hope-and-skepticism-in-nigerias-long-struggle-with-unreliable-electricity","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=98436","title":{"rendered":"Tinubu\u2019s \u20a63.3tn Power Sector Payout Elicits Hope – and Skepticism – in Nigeria\u2019s Long Struggle with Unreliable Electricity"},"content":{"rendered":"
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President Bola Tinubu<\/span><\/span>\u00a0has approved a \u20a63.3 trillion payment plan aimed at clearing a decade-long backlog of debts in Nigeria\u2019s troubled power sector, a move the government says could mark a turning point in the country\u2019s persistent electricity crisis.<\/p>\n

As the next phase of the programme begins, many are watching closely – not for policy announcements, but for a simple outcome: steady power in their homes and businesses.<\/p>\n

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According to a State House press release issued by presidential spokesman Bayo Onanuga<\/span><\/span>, the disbursement falls under the Presidential Power Sector Financial Reforms Programme and is designed to settle liabilities accumulated between 2015 and 2025. Officials say \u20a62.3 trillion worth of agreements have already been signed with 15 generation companies, while \u20a6223 billion has been disbursed from an initial \u20a6501 billion funding pool.<\/div>\n
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The administration argues that clearing these \u201clegacy debts\u201d will stabilize electricity generation by ensuring that power producers and gas suppliers are paid \u2014 a longstanding bottleneck in Nigeria\u2019s electricity value chain.<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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A Familiar Promise in a Troubled Sector<\/h3>\n

For decades, Nigeria\u2019s power sector has been synonymous with erratic supply, despite repeated reform efforts. Since the 2013 privatization of generation and distribution companies, successive governments have pledged improvements, yet millions of Nigerians still rely on generators to fill daily supply gaps.<\/p>\n

At the heart of the problem has been a cycle of debt and inefficiency: distribution companies struggle with revenue collection, generation companies remain underpaid, and gas suppliers often go unpaid \u2014 leading to reduced output and frequent grid instability.<\/p>\n

Energy experts say the newly approved payout directly targets this cycle, potentially unlocking generation capacity that has been constrained by liquidity shortages.<\/p>\n

\u201cThis is one of the most ambitious attempts to clean up the sector\u2019s balance sheet,\u201d said a Lagos-based power analyst. \u201cIf implemented transparently, it could improve generation in the short term. But Nigeria has seen large interventions before.\u201d<\/p>\n

Implications: Stability vs Structural Weakness<\/h3>\n

The government insists the intervention will translate into more reliable electricity for households and businesses.\u00a0Olu Arowolo-Verheijen<\/span><\/span>, Special Adviser on Energy to the President, said the programme is about \u201crestoring confidence\u201d across the sector and enabling a more functional electricity market.<\/p>\n

However, analysts caution that debt repayment alone may not resolve deeper structural issues, including:<\/p>\n

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    \u25aa\ufe0e Weak transmission infrastructure that limits how much power can be delivered nationwide<\/p>\n<\/li>\n

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    \u25aa\ufe0e Chronic metering gaps that undermine revenue collection<\/p>\n<\/li>\n

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    \u25aa\ufe0e Tariff shortfalls and political resistance to cost-reflective pricing<\/p>\n<\/li>\n

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    \u25aa\ufe0e Persistent grid collapses that highlight system fragility<\/p>\n<\/li>\n<\/ul>\n

    Historically, similar financial interventions – including bailout funds and payment assurances – have provided temporary relief but failed to produce sustained improvements in supply.<\/p>\n

    Businesses Watch Closely<\/h3>\n

    For Nigeria\u2019s private sector, the stakes are high. Unreliable electricity has long increased operating costs, forcing companies to spend heavily on diesel and petrol generators.<\/p>\n

    The government says it is prioritizing electricity supply to industries and small businesses as part of broader reforms, including service-based tariffs and improved metering.<\/p>\n

    If successful, economists say the plan could reduce production costs, boost job creation, and improve competitiveness. But if it falters, it risks reinforcing public skepticism about government-led power reforms.<\/p>\n

    Public Trust on the Line<\/h3>\n

    Beyond the technical and financial implications, the initiative represents a test of public confidence. Nigerians have heard repeated assurances of improved electricity over the years, often with limited results.<\/p>\n

    The Tinubu administration\u2019s decision to move forward with a \u201cfull and final settlement\u201d of sector debts signals a recognition that liquidity – long identified as a core constraint – must be addressed decisively.<\/p>\n

    Yet the ultimate measure of success will not be in trillions disbursed, but in hours of electricity delivered.<\/p>\n

    Below is the Presidency’s full statement:<\/strong><\/p>\n

    STATEHOUSE PRESS RELEASE<\/p>\n

    PRESIDENT TINUBU APPROVES N3.3 TRILLION PAYMENT PLAN TO RESTORE RELIABLE ELECTRICITY<\/p>\n

    President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.<\/p>\n

    The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.<\/p>\n

    The long-standing debts accumulated between February 2015 and March 2025. Following verification, \u20a63.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.<\/p>\n

    Implementation has begun, with 15 power plants signing settlement agreements totalling \u20a62.3 trillion. The Federal Government has already raised \u20a6501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.<\/p>\n

    What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.<\/p>\n

    And as the sector stabilises, more investment, more jobs, and better service will follow.<\/p>\n

    \u201cThis programme is not just about settling legacy debts. It is about restoring confidence across the power sector \u2014 ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” explained Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu.<\/p>\n

    \u201cIt is part of a broader set of reforms already underway \u2014 including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.<\/p>\n

    \u201cThe government is also prioritising power supply to businesses, industries, and small enterprises \u2014 because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.<\/p>\n

    \u201cThe goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.<\/p>\n

    President Tinubu has commended all stakeholders who supported efforts to resolve the legacy issues in the power sector. He has also confirmed that the next phase (Series II) will begin this quarter.<\/p>\n

    Bayo Onanuga
    \nSpecial Adviser to the President<\/p>\n

    (Information and Strategy)<\/p>\n

    April 5, 2026 \u200e<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    President Bola Tinubu\u00a0has approved a \u20a63.3 trillion payment plan aimed at clearing a decade-long backlog of debts in Nigeria\u2019s troubled power sector, a move the government says could mark a turning point in the country\u2019s persistent electricity crisis. As the next phase of the programme begins, many are watching closely – not for policy announcements, […]<\/p>\n","protected":false},"author":7,"featured_media":98127,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5777,7],"tags":[2613,445,4236,8205,56],"class_list":["post-98436","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-features","category-news","tag-businesses","tag-electricity","tag-homes","tag-n3-3trn","tag-tinubu"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/98436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=98436"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/98436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/media\/98127"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=98436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=98436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=98436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}