President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear verified legacy debts owed to power generation companies, following criticism from Labour Party’s 2023 presidential candidate Peter Obi over the sector’s crisis.
The announcement, detailed in a Sunday statement by presidential spokesperson Bayo Onanuga, covers debts spanning over a decade. It supplements the existing ₦501 billion pioneer bond, which Gencos claim has ballooned to ₦6 trillion overall.
“Following verification, ₦3.3 trillion is agreed as full and final settlement,” the statement noted. Implementation is underway, with 15 power plants signing agreements totalling ₦2.3 trillion. The government has raised ₦501 billion, disbursing ₦223 billion so far, with more payments in progress.
The move aims to stabilize generation, boost electricity reliability, attract investment, create jobs, and improve services for Nigerians, the statement added.
President Tinubu’s special adviser on energy, Olu Arowolo-Verheijen, described it as restoring sector confidence—ensuring gas suppliers are paid, plants run reliably, and reforms like better metering and service-based tariffs advance.
However, the Association of Power Generation Companies (APGC) rejected the plan, protesting the slash from ₦6 trillion to ₦3.3 trillion. APGC Chief Officer Dr. Joy Ogaji questioned: “Is verification unilateral in a bilateral agreement?”
The development follows Obi’s Thursday critique of Tinubu’s power sector handling, highlighting unfulfilled campaign promises of fixes within four years. Nigerians continue facing epileptic supply over two years into the administration.
