Abuja: Residents of the Federal Capital Territory (FCT) have expressed optimism that electricity supply will improve following the approval of N3.3 trillion by the Federal Government to settle long-standing debts owed to generation companies.
According to News Agency of Nigeria, Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, stated that President Bola Tinubu approved the fund to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme. This debt payment plan comes after a final review of the legacy debts that have plagued the power sector for more than a decade, accumulating between February 2015 and March 2025. After verification, N3.3 trillion was agreed upon as a full and final settlement, ensuring a fair and transparent resolution.
NAN also reported that there had been power outages in some parts of the country for months, while other areas experienced them for weeks and days. These outages have led to the collapse of many businesses. The Nigerian Independent System Operator (NISO) attributed the continued decline in electricity generation on the national grid to persistent gas supply constraints affecting several thermal power plants.
Mr. Pius Ogiemudia, an engineer residing in Orozo, mentioned that the payment of the debt would improve electricity as Power Generation Companies (GenCos) would be able to pay for the gas supplied to them. He stated that the payment would ensure consistent gas supply to thermal plants, which account for about 70 percent of the country’s power generation.
Mr. Stephen Adelaja, an accountant residing in Kuje, noted that settling the debt by the Federal Government would reduce the incidence of load shedding and grid collapses, leading to more reliable electricity for homes and businesses. Adelaja remarked that the power supply had been erratic for a long time and that with the payment, electricity would improve.
Mrs. Caroline Odeh, a resident of Lugbe, described the move as a ‘strategic reset’ intended to attract private capital and encourage investment in generation and distribution infrastructure. Odeh emphasized that stabilizing the power sector would support industrialization, create jobs, and foster economic growth, particularly for small enterprises. She expressed her satisfaction with the development, stating that it would improve power supply and boost investor confidence in the sector.