From David Onuoja, Abuja
The Federal Government has finalised plans to restore financial stability and paving way for investor’s confidence in the electricity market with the finalisation of the implementation framework for the Presidential Power Sector Debt Reduction Plan.
The initiative which was approved by President Bola Ahmed Tinubu is to address structural bottlenecks and lay the groundwork for large-scale private sector-led investment and sustained economic growth.
This was made known through a statement released by Senan Murray, the Media and Communications Unit Office of the Special Adviser to the President on Energy.
He said the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the Minister of Power, Chief Bayo Adelabu, and the Special Adviser to the President on Energy, Mrs. Olu Verheijen, met with senior executives of Nigeria’s electricity Generation Companies (GenCos), to review settlement modalities for the outstanding debt.
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The meeting was concluded with a consensus on the way forward, which includes conducting bilateral negotiations to finalise full and final settlement agreements that balance fiscal realities with the financial constraints of the GenCos.
“For the first time in years, we are seeing a credible and systematic effort by government to tackle the root liquidity challenges in the power sector,” said Mr. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power. “We commend President Tinubu and his economic team for this bold and transformative step.”
Beyond clearing arrears, the debt reduction plan signals a strategic reset of Nigeria’s electricity market. By restoring the financial health of power companies, it will enable new investment in generation capacity, modernize grid infrastructure, and deliver more reliable electricity to homes and businesses, creating a stronger foundation for stability in the sector.
