Tinubu Approves N3.3 Trillion Power Sector Bailout

President Bola Tinubu has approved a N3.3 trillion payment plan to address outstanding debts in Nigeria's power sector, as announced by his special adviser, Bayo Onanuga. This initiative is part of a broader financial reform program aimed at resolving long-standing issues in the sector, which has faced challenges for decades.

The debt repayment plan, which covers the period from February 2015 to March 2025, has been verified and agreed upon to ensure transparency. The federal government has already raised N501 billion to facilitate initial payments, with N223 billion disbursed.

The settlement agreement involves 15 power plants, totaling N2.3 trillion. This bailout is expected to stabilize power generation, improve electricity reliability, and restore confidence among stakeholders.

Dr. Joi Ogaji, CEO of the Association of Power Generation Companies, highlighted that the debt crisis stems from the Nigerian Bulk Electricity Trading Plc's failure to fully pay electricity generation companies, leading to a significant nationwide power shortage.