N3.3trn debt payment: Stakeholders optimistic of improved power supply

Residents of the FCT have expressed optimism that with the approval of N3.3 trillion by the Federal Government to settle the long-standing debts owed generation companies, electricity supply will improve.

The residents spoke to the News Agency of Nigeria in Abuja on Tuesday.

Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, in a statement said that President Bola Tinubu approved the fund to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

The debt payment plan followed the final review of the legacy debts that had beset the power sector for more than a decade.

The long-standing debts accumulated between February 2015 and March 2025. Following verification.

He said ₦3.3 trillion was agreed as a full and final settlement, ensuring a fair and transparent resolution.

Recall that there had been power outage in some parts of the country for some months, while other areas for some weeks and days.

Following the development, a lot of businesses had collapsed .

The Nigerian Independent System Operator, NISO, attributed the continued decline in electricity generation on the national grid as well as the persistent gas supply constraints affecting several thermal power plants.

Pius Ogiemudia, an Enginner, resident in Orozo said that the payment of the debt would improve electricity as Power Generation Companies (GenCos) would be able to pay for gas supplied to them.

According to him, the payment will ensure consistent gas supply to thermal plants, which account for about 70 per cent of the country’s power generation.

”I am happy that the Federal Government has approved payment plan to settle the debt owed generation companies as I believe that this will bring lasting solution to the problem in the power sector,”he said.

Stephen Adelaja, an Accountant residing in Kuje, said that the settling of the debt by the Federal Government would reduce the incidence of load shedding and grid collapses, leading to more reliable electricity for homes and businesses.

Mr Adelaja said that the power supply had been epileptic for a long time and with the payment, electricity would improve.

Caroline Odeh, a resident of Lugbe said that the move was seen as a “strategic reset” intended to attract private capital and encourage investment in generation and distribution infrastructure.

Mrs Odeh said that stabilising the power sector would support industrialisation, create jobs, and foster economic growth, particularly for small enterprises.

”I am happy about the development, it will improve power supply and also boost investors confidence in the sector,” she said.
NAN