Photo: Electricity transmission lines (file photo) — Geograph via Wikimedia Commons
The Federal Government says it has raised 1.23 trillion naira under its 3.3 trillion naira plan to settle verified legacy debts owed to electricity generation companies, as it tries to ease the liquidity crisis choking the power sector.
The Minister of Power, Joseph Tegbe, gave the update in Abuja while declaring open the 6th Annual Conference of the Power Correspondents Association of Nigeria (PCAN), The Sun reported on Thursday.
- The 3.3 trillion naira figure is the verified full-and-final settlement for debts from February 2015 to March 2025
- 1.23 trillion naira has been raised so far under the bond-backed programme
- The government says over 15,000MVA of transmission capacity was added between 2023 and October 2026
What the power debt plan actually is
The settlement plan, approved by President Bola Tinubu in April 2026 under the Presidential Power Sector Financial Reforms Programme, followed a verification of claims that had accumulated across the electricity value chain for more than a decade.
Total claims of about 4.7 trillion naira were reviewed and reduced to the agreed 3.3 trillion naira. Implementation began with power plants signing settlement agreements, and the first phase raised 501 billion naira, of which 223 billion naira has been disbursed to generation companies and gas suppliers, according to the Presidency.
Tegbe said the money raised so far is easing pressure on generators and improving their ability to pay for gas and maintain their plants.
Why Nigerians should care about the GenCo debts
Unpaid government obligations have weakened generation companies and gas suppliers for years, limiting their ability to fund maintenance and fuel, and feeding the cycle of low generation and outages.
The government's argument is that clearing verified debts, alongside market reforms, is what restores confidence for investment across the chain from gas to generation to transmission.
What happens next
The programme's second phase is expected to begin this quarter, with further bond issuances to complete the settlement. Whether generation and supply measurably improve is the test Nigerians will judge it by.
Credit: The Sun report of November 12, 2026, and the State House statement on the Presidential Power Sector Financial Reforms Programme.
Follow @newstweetnaija on Instagram for the day's biggest stories.
