President Bola Ahmed Tinubu has approved an additional ₦3.3 trillion to settle verified legacy debts owed to power generation companies (GenCos), in a renewed effort to address the financial challenges undermining electricity generation and supply in Nigeria.
The Minister of Power, Joseph Tegbe, disclosed this at the sixth annual conference and workshop of the Power Correspondents Association of Nigeria (PCAN) in Abuja, where he outlined ongoing government interventions aimed at stabilising the Nigerian Electricity Supply Industry (NESI).
Tegbe, who was represented by his Special Adviser on Administration and Project, Martins Olajide, said the Federal Government had already raised ₦1.23 trillion under the debt settlement plan to ease the financial burden on generation companies.
He explained that the intervention was expected to improve the capacity of GenCos to meet their financial obligations to gas suppliers, maintain generating plants and support more reliable electricity production.
The latest approval comes amid persistent liquidity challenges in the power sector, where outstanding obligations across the electricity value chain have continued to affect gas supply, generation capacity and investment in critical infrastructure.
The minister also highlighted progress under the Presidential Metering Initiative, disclosing that more than 2.8 million electricity customers had been metered as part of efforts to reduce estimated billing, improve revenue collection and address commercial losses within the distribution segment.
According to him, the government is pursuing interventions across generation, transmission and distribution to improve the performance of the electricity industry.
He said the Rural Electrification Agency had connected universities, hospitals and rural communities to solar power systems, expanding access to electricity for institutions and underserved communities.
Tegbe further disclosed that construction had commenced on a new ultra-modern National Grid Control Centre in Osogbo, designed to replace the existing facility, which was built more than 60 years ago.
The minister said the project formed part of efforts to modernise the management and monitoring of the national grid, strengthen system operations and improve the reliability of electricity transmission.
He added that Nigeria had recorded an increase of more than 15,000 megavolt-amperes (MVA) in transmission capacity between 2023 and October 2026.
Despite the interventions, the electricity industry continues to face structural and financial difficulties, including inadequate gas supply, ageing infrastructure, weak revenue collection and mounting debts among operators.
The Federal Government’s latest debt settlement approval is therefore expected to form part of a broader effort to restore liquidity across the sector and improve the ability of generation companies to sustain electricity production.
