Nigeria Approves ₦4 Trillion Debt Refinancing Plan to Boost Power Sector

By Diafa Doubra,

In a major move aimed at stabilizing the nation’s troubled electricity sector, the Federal Government has approved a ₦4 trillion ($2.61 billion) debt refinancing plan for 27 power generation companies. The debts, which piled up between 2015 and 2023, have long strained the industry, threatening both supply and investor confidence.

Finance Minister Olawale Edun announced the decision on Wednesday, stating that the Debt Management Office will oversee the process, issuing bonds and other instruments over the next three to four weeks. The government also unveiled reform measures, including a 35% reduction in subsidies and higher tariffs for urban consumers changes projected to save about ₦1.1 trillion annually. Officials say the plan will restore liquidity to the power sector, improve generation capacity, and pave the way for long-term investment.