The Presidency on Thursday addressed the controversy trailing President Bola Tinubu’s approval of a ₦3.3 trillion repayment plan for verified legacy debts owed to power generation companies (GenCos) between February 2015 and March 2025.
The Presidency explained that President Bola Ahmed Tinubu approved the repayment arrangement under the Presidential Power Sector Financial Reforms Programme after an extensive assessment of inherited debts accumulated between February 2015 and March 2025. Following detailed verification and reconciliation processes, both the government and participating firms agreed that ₦3.3 trillion constitutes the complete and final settlement of all confirmed liabilities.
To date, 15 power generation companies (GenCos) have signed repayment agreements covering liabilities estimated at about ₦2.3 trillion, while further disbursements are expected as more funds are made available. To support the programme, the government has secured ₦501 billion through a bond issuance, with ₦223 billion already released to the affected companies.
Officials stressed that the initiative goes beyond simply offsetting debts, noting that it is designed to boost liquidity across the power sector, guarantee prompt payments to gas suppliers, and sustain stable electricity generation. The reform package also includes improved metering systems, service-reflective tariffs, and the prioritisation of electricity supply to commercial and industrial users.
Speaking for the Federal Government, the President’s Special Adviser on Energy stated that the repayment plan is intended to restore confidence within the sector and enhance operational efficiency at generation facilities.
