Tinubu Sanctions ₦3.3 Trillion Debt Settlement Plan to Revive Power Sector, Boost Electricity Supply

Story: Written by Joseph April 7,2026
President Bola Ahmed Tinubu has approved a ₦3.3 trillion intervention aimed at clearing long-standing debts in Nigeria’s power sector, a move expected to stabilise the industry and improve electricity supply nationwide.
The initiative is designed to address financial bottlenecks affecting generation, transmission, and distribution companies, which have struggled under heavy debt burdens and liquidity challenges. By settling these obligations, the government hopes to restore confidence among investors and operators within the energy sector.
Officials say the plan will enhance operational efficiency across the power value chain, ensuring that electricity providers can meet their obligations and deliver more reliable services to consumers.
The administration emphasized that the intervention forms part of broader reforms targeted at strengthening Nigeria’s power infrastructure and reducing persistent outages experienced by households and businesses.
Authorities also expressed optimism that the debt clearance will unlock new investments, improve power generation capacity, and ultimately lead to more stable and consistent electricity supply across the country.
The development comes amid ongoing efforts by the federal government to tackle structural challenges in the energy sector and drive economic growth through improved access to electricity.