The Digest:
President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria's power sector, spanning February 2015 to March 2025. The government said 15 power generation companies have signed settlement agreements valued at ₦2.3 trillion, with ₦501 billion raised so far and ₦223 billion already disbursed. Special Adviser on Energy Olu Arowolo-Verheijen said the initiative aims to restore confidence, ensure gas suppliers are paid, and make the power system more reliable. Nigeria loses an estimated $26 billion annually to power failures.
Key Points:
- Debt settlement could break the cycle of poor generation and grid collapses.
- Businesses spend $22 billion yearly on off-grid fuel due to unreliable power.
- Service-based tariffs will link payment to the electricity quality received.
- The next phase (Series II) will commence within the current quarter.
- Improved power supply could boost industrial productivity and job creation.
Sources: Channels Television
