After criticism from 2023 Labour Party presidential candidate, Peter Obi, over the power crisis, President Bola Tinubu has unveiled a plan to clear N3.3 trillion power sector legacy debt owed to generation companies.
According to a statement on Sunday by presidential aide Bayo Onanuga, the N3.3 trillion payment plan came after thorough verification of the country’s decade-long power sector debt.
This plan comes on top of an earlier N501 billion bond meant to settle legacy debts, which generation companies now say has ballooned to N6 trillion.
“Following verification, N3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
“Implementation has begun, with 15 power plants signing settlement agreements totalling N2.3 trillion. The Federal Government has already raised N501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.
“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.
“And as the sector stabilizes, more investment, more jobs, and better service will follow,” the statement added.
Speaking on the development, Olu Arowolo-Verheijen, Tinubu’s special adviser on energy, said, “This program is not just about settling legacy debts. It is about restoring confidence across the power sector—ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably.
“It is part of a broader set of reforms already underway, including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.”
But the Association of Power Generation Companies (APGC) is not impressed, saying the government cut the legacy debt from N6 trillion to N3.3 trillion.
Reacting, APGC Chief Officer Dr. Joy Ogaji asked, “Is verification unilateral in a bilateral agreement?”
On Thursday, Peter Obi slammed Tinubu over the country’s power crisis, saying the ongoing issues show unfulfilled promises by the President.
Nigerians have continued to suffer unreliable electricity for months, with no real improvement in sight.
Tinubu had promised during his campaign to fix power supply within four years, but more than two years into his administration, the crisis remains.
