In a decisive move to stabilize the nation’s power sector, President Bola Ahmed Tinubu has approved a ₦4 trillion debt refinancing plan aimed at clearing legacy arrears owed to 27 power generation companies (GenCos) for electricity supplied between 2015 and 2023.
The plan, announced by Finance Minister Olawale Edun following a Federal Executive Council meeting, involves settling the verified debts through bonds, treasury instruments, and phased cash payments. This intervention is expected to restore liquidity, boost investor confidence, and ensure a stable power supply across Nigeria.
The refinancing strategy is part of broader electricity sector reforms, including a 35% reduction in subsidies and increased tariffs for urban consumers, projected to save the government approximately ₦1.1 trillion annually. These measures aim to create a more sustainable and efficient power sector for the nation.
President Tinubu’s administration remains committed to addressing the challenges facing the power sector and ensuring that all Nigerians have access to reliable and affordable electricity.
