Presidency Unveils Bold Initiative to Tackle ₦2 Trillion Power Sector Debt and Rescue Nigeria’s Energy Grid
In a sweeping move to stabilize Nigeria’s faltering electricity sector, the Presidency has begun taking decisive steps to settle the over ₦2 trillion debt crippling the power industry. The new plan—hailed as one of the most ambitious interventions in over a decade—is aimed at addressing long-standing financial bottlenecks, boosting investor confidence, and ultimately delivering reliable power to millions of Nigerians.
For years, the Nigerian power sector has been plagued by debt, inefficiency, and chronic underperformance. Despite multiple reforms and privatizations, the industry remains in a fragile state, with national grid collapses, low generation output, and payment shortfalls being all too common.
But now, there are signs that Aso Rock is rolling up its sleeves, signaling that the government is done with half-measures.
The Power Problem: A Vicious Cycle of Debt and Darkness
The ₦2 trillion debt burden spans multiple layers of the power value chain:
- GenCos (Generation Companies) owed for power supplied but not paid for
- Gas suppliers left hanging due to unpaid invoices
- DisCos (Distribution Companies) struggling to remit earnings due to poor collections and technical losses
- NBET (Nigerian Bulk Electricity Trading) drowning in liabilities as the central market operator
This web of debt has created a vicious cycle: GenCos can’t produce because they’re not paid. Gas suppliers shut valves. DisCos deliver unreliable service. Customers refuse to pay. And the grid—already fragile—remains on the brink of collapse.
The Presidency’s Plan: A Financial Reset?
Sources close to the Presidency say the government is considering a multi-pronged strategy to clean up the books and reignite power sector investments. Key elements of the plan include:
- Debt Restructuring & Bailout: A phased disbursement of funds to settle verified debts owed to GenCos and gas suppliers
- Performance-Linked Funding: Future support tied to measurable performance by DisCos and GenCos, including improved collections and reduced losses
- Energy Stabilization Fund: A new fund in partnership with the CBN and international development partners to ensure liquidity in the sector
- Tariff Adjustment with Subsidy Relief: An overhaul of electricity tariffs to reflect true market costs, paired with targeted subsidies for low-income households
Aso Rock Speaks
In a statement released by the Special Adviser to the President on Energy Reform, Dr. Ibrahim Wali, the Presidency made it clear: “We can no longer afford to let the power sector drag the economy backward. We are moving aggressively to settle legacy debts and reset the system for sustainability.”
The move is also seen as part of a broader economic rescue plan under the President’s “Energy for Growth Agenda,”which prioritizes stable power as a cornerstone of job creation, industrial growth, and digital transformation.
Industry Reactions: Hope, But With Caution
Players in the power sector have welcomed the announcement with cautious optimism.
“The signal from the top is encouraging,” said Mrs. Ifeyinwa Okonkwo, CEO of EasternGen. “But the money must reach the right hands. And reforms must follow the cash.”
Energy analysts agree. They warn that without accountability, the debt cycle could quickly return, turning the ₦2 trillion bailout into yet another patch on a leaking pipe.
Others stress the need for long-term policy consistency, stronger regulation, and investment in infrastructure—especially in transmission and metering.
Will Nigerians Finally See the Light?
For the average Nigerian, the bigger question remains: Will any of this translate into better electricity supply?
Over the years, promises have been made—and broken. Entire communities still depend on generators. Businesses bleed funds to fuel costs. Students study by candlelight. And when power comes, it’s often fleeting, followed by darkness—and frustration.
Yet, this latest move feels different. The scale of the intervention, the urgency in tone, and the focus on market restructuring suggest the Presidency understands that no economy can thrive in darkness.
A Turning Point or Another Missed Opportunity?
If executed transparently and strategically, this initiative could mark a turning point for Nigeria’s energy sector—unlocking private capital, restoring trust, and bringing much-needed relief to both power producers and end-users.
But the road ahead is long, and skepticism remains high. For many Nigerians, results—not rhetoric—will determine the success of this bold attempt to reset the power sector.
June 2025 may be remembered as the moment Nigeria’s leaders finally turned the lights back on—or just another chapter in a never-ending blackout.
