On June 2, 2025, the Nigerian Presidency announced plans to pay ₦2 trillion of the ₦4 trillion owed to electricity distribution companies (DisCos) by federal agencies, aiming to stabilize the power sector.
The debts, accumulated over a decade, stem from unpaid bills by ministries, departments, and agencies (MDAs), with the Nigerian Army alone owing ₦42 billion. Power Minister Adebayo Adelabu, speaking in Abuja, said the payment, funded through a 2025 supplementary budget, would address liquidity issues crippling DisCos, which supply only 4,500 MW against a 13,000 MW demand. The remaining ₦2 trillion will be audited to verify claims, with a repayment plan by 2026.
The initiative follows public outcry over erratic power supply, with 60% of Nigerians relying on generators costing ₦3 trillion annually. DisCos, like Eko and Abuja, welcomed the move, noting it would fund infrastructure upgrades, but warned that tariff hikes, averaging 20% in 2024, may persist without full debt clearance.
Critics, including the Nigeria Labour Congress, argue the government’s 40% stake in DisCos warrants stricter oversight, citing mismanagement. The plan aligns with Tinubu’s goal to achieve 6,000 MW by 2026, but challenges like gas shortages and vandalism, costing $200 million in repairs in 2024, remain hurdles. Public skepticism persists, as past debt settlements yielded minimal improvements.
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