Tinubu Approves ₦3.3 Trillion Power Debt Bailout — Will Nigerians Finally Get Steady Electricity?

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President Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion bailout to clear long-standing debts in Nigeria’s power sector, a move that could mark a turning point in the country’s decades-long electricity crisis.

The debt, accumulated between February 2015 and March 2025, has severely weakened power generation companies, gas suppliers, and other critical players in the electricity value chain, contributing to persistent blackouts that have frustrated millions of Nigerians and stifled economic growth. After a detailed verification process, the Federal Government agreed to settle the liabilities in full under the Presidential Power Sector Financial Reforms Programme.

Early implementation is already in motion, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. To fund the initiative, the government raised ₦501 billion through a special bond, out of which ₦223 billion has been disbursed, while additional payments are being processed in phases.

According to the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, the intervention goes beyond simply paying off debts. She explained that the programme is designed to restore confidence across the sector, ensure gas suppliers are paid, and enable power plants to operate more efficiently, ultimately leading to a more stable electricity supply nationwide.

She further noted that the government is implementing broader reforms alongside the bailout, including improved metering systems and service-based tariffs that align consumer payments with the quality of electricity supply received. The administration is also prioritising electricity distribution to businesses, industries, and small enterprises, recognising the central role of reliable power in job creation, productivity, and economic expansion.

While the announcement has been welcomed by industry stakeholders as a potential game-changer capable of stabilising generation and attracting fresh investment, some critics have raised concerns about its timing, coming just over a year before the 2027 general elections. For many Nigerians who continue to endure erratic power supply, the key question remains whether the massive financial intervention will translate into real and lasting improvements.

The presidency has indicated that a second phase of the reform programme will commence later this quarter, reinforcing its commitment to overhauling the sector. President Tinubu also commended stakeholders involved in resolving the long-standing crisis and expressed optimism that the reforms will deliver more reliable electricity to homes and businesses across the country.

The development was disclosed in an official statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy.