3.3trn debt payment -Stakeholders optimistic of improved power supply

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Residents of the Federal Capital Territory (FCT) have expressed optimism that electricity supply will improve following the Federal Government’s approval of ₦3.3 trillion to settle long-standing debts owed to power generation companies (GenCos).

The residents spoke in separate interviews with the News Agency of Nigeria (NAN) in Abuja on Tuesday.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed in a statement that Bola Tinubu approved the fund under the Presidential Power Sector Financial Reforms Programme.

According to him, the payment plan followed a final review of legacy debts that have plagued the power sector for over a decade. The debts, accumulated between February 2015 and March 2025, were verified before ₦3.3 trillion was agreed upon as a full and final settlement aimed at ensuring fairness and transparency.

NAN reports that the development comes amid persistent power outages experienced in various parts of the country, with some areas facing disruptions lasting months, while others endure weeks or days without stable electricity. The outages have adversely affected businesses, with many forced to shut down operations.

The Nigerian Independent System Operator (NISO) had attributed the decline in electricity generation on the national grid to ongoing gas supply constraints affecting several thermal power plants.

Reacting to the development, Mr. Pius Ogiemudia, an engineer residing in Orozo, said the settlement would enable GenCos to meet their financial obligations, particularly payments for gas supply.

He noted that improved liquidity would ensure consistent gas supply to thermal plants, which account for about 70 per cent of Nigeria’s electricity generation.

“I am happy that the Federal Government has approved a payment plan to settle the debt owed generation companies, as I believe this will bring a lasting solution to the problem in the power sector,” he said.

Similarly, Mr. Stephen Adelaja, an accountant in Kuje, said settling the debt would reduce load shedding and grid collapses, resulting in more reliable electricity for households and businesses.

He added that power supply had been unstable for a long time but expressed hope that the intervention would bring significant improvement.

Mrs. Caroline Odeh, a resident of Lugbe, described the move as a “strategic reset” aimed at attracting private investment into power generation and distribution infrastructure.

According to her, stabilising the power sector would boost industrialisation, create jobs, and support economic growth, particularly for small and medium-scale enterprises.

“I am happy about the development; it will improve power supply and also boost investors’ confidence in the sector,” she said. (NAN)