The Nigerian Presidency pledged to settle ₦2 trillion of the ₦4 trillion electricity debts owed to distribution companies (DisCos) by federal agencies by the third quarter of 2025, as announced by Power Minister Adebayo Adelabu in Abuja.
The debts, accrued over 15 years, primarily from unpaid bills by ministries, departments, and agencies (MDAs), with the Nigerian Army owing ₦42 billion, have crippled DisCos’ ability to deliver 4,500 MW against a 13,000 MW demand. The payment, funded via a ₦1.5 trillion supplementary budget, aims to enhance liquidity, enabling 20% grid upgrades to reach 6,000 MW by 2026.
Adelabu outlined a verification process for the remaining ₦2 trillion, with 1,000 MDA meters audited to curb billing fraud, as 30% of debts are disputed. DisCos, servicing 12 million customers, welcomed the plan, projecting ₦500 billion in infrastructure investments, but warned of 15% tariff hikes without full clearance. Nigerians, spending ₦3 trillion yearly on generators, expressed skepticism, with 65% in polls citing 10 power collapses in 2024.
Critics, including the Nigeria Labour Congress, demand DisCo accountability, as 40% of their $2 billion revenue is unremitted. The initiative, part of Tinubu’s $10 billion power plan, faces hurdles like 20% gas shortages and 1,500 vandalized towers, costing ₦1 billion in repairs. Success could save ₦500 billion in fuel costs, but 70% of Nigeria’s 220 million lack reliable power, underscoring systemic gaps.