RismadarVoice Reporters
October 28, 2026
The Federal Government of Nigeria has announced the payment of ₦1.23 trillion out of an estimated ₦3.3 trillion in outstanding debts owed to electricity generation companies, as part of efforts to address financial challenges affecting Nigeria’s power sector.
The Minister of Power, Joseph Tegbe, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
According to Tegbe, the outstanding liabilities have contributed to difficulties in securing adequate gas supplies for electricity generation, undermining the performance of power plants across the country.
The minister explained that settling the debts would help improve liquidity within the electricity market and strengthen the ability of generation companies to meet their financial obligations.
The reported payment represents approximately 37 per cent of the estimated debt, leaving about ₦2.07 trillion outstanding.
Tegbe said the government was also implementing measures to prevent the accumulation of fresh liabilities and improve the financial sustainability of the electricity industry.
Beyond debt settlement, the minister announced plans to expand Nigeria’s electricity transmission capacity from approximately 5,000 megawatts to 19,000 megawatts.
He explained that the proposed expansion would involve targeted investments in transmission infrastructure and measures to strengthen the resilience of the national grid.
The initiative is intended to address existing transmission constraints, improve electricity delivery and accommodate future growth in generation capacity.
Nigeria’s power sector continues to face interconnected challenges involving inadequate gas supply, ageing infrastructure, transmission limitations and financial losses within electricity distribution networks.
These problems have affected the ability of electricity companies to deliver reliable power to households, businesses and industries.
Tegbe had earlier identified improved sector liquidity, infrastructure expansion, optimisation of existing assets and stronger coordination among electricity operators as priorities of the government’s reform programme.
The Federal Government is also pursuing electricity metering initiatives and measures to reduce technical and commercial losses across distribution networks.
The minister maintained that resolving the industry’s financial and infrastructure challenges would help attract investment and support economic activities.
However, the proposed 19,000MW transmission capacity remains a government target, with no completion date specified in the latest briefing.
The government has also not provided a detailed public breakdown of the reported ₦1.23 trillion payments to individual electricity generation companies.
The effectiveness of the intervention will ultimately depend on the completion of the debt settlement programme and improvements in electricity supply to consumers.
