Tinubu Approves N3.3tn Plan to Resolve Power Sector Debt
• This Day • Business
President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan to address the longstanding debts owed to power generation companies (Gencos) and gas suppliers in Nigeria's electricity sector. This initiative aims to resolve a liquidity crisis that has plagued the sector, with debts accumulating since February 2015. The plan follows a final verification of legacy obligations and is part of a broader presidential power sector financial reform program. The government has already raised N501 billion to kickstart the process, with N223 billion earmarked for immediate disbursement. Fifteen power generation companies have signed settlement agreements with the federal government, covering a total of N2.3 trillion. The president expressed optimism that the funds will stabilize the power generation value chain, improve electricity supply, and enhance investor confidence in the sector. The second phase of the program is expected to commence later in the quarter, further supporting the sector's recovery and reliability.
Topics: Politics, Economy