Just In: FG Approve ₦2 Trillion To Settle Power Sector Debt
Published on Tuesday, June 3, 2025 at 12:20 PM
President Bola Ahmed Tinubu’s administration has vowed to clear Nigeria’s staggering ₦2 trillion electricity debt by the end of Q3 2025, in a bold move aimed at rescuing the country’s ailing power sector.
This assurance came on Monday during the Nigerian Electricity Supply Industry Stakeholders Meeting of 2025, convened by the Nigerian Electricity Regulatory Commission (NERC). Eriye Onagoruwa, spokesperson for the President’s Special Adviser on Energy, emphasized the urgency of the matter, acknowledging the crippling impact the debt has had on Generation Companies (GenCos) and the overall electricity supply chain.
“The President is fully aware of the weight of this legacy debt and the risk it poses to national power stability,” Onagoruwa stated. “We’re actively considering alternative debt instruments, and high-level internal approvals are progressing. The Coordinating Minister of the Economy and the Debt Management Office are fully on board.”
This development follows recent threats by GenCos to shut down power operations due to over ₦4 trillion in unpaid gas and service fees, a crisis that could paralyze the nation’s already fragile electricity supply.
Despite promises, previous efforts have failed to close the widening gap. Minister of Power Adebayo Adelabu had earlier pledged to offset half the ₦4 trillion debt by year-end.
Sector experts continue to warn that unless the federal government swiftly honors its financial obligations, the power sector could face total collapse—more than a decade after its privatization.
Persistent challenges—including unstable power supply, rampant vandalism, outdated infrastructure, low investment, and recurring grid failures—have plagued Nigeria’s energy landscape, leaving millions in the dark.
