By Anthony Otaru, Abuja
President Bola Tinubu’s approval of a staggering ₦4 trillion debt refinancing package for Nigeria’s power sector has been billed as a game-changer.
Government officials describe it as a decisive intervention to restore liquidity to generation companies (GENCOs), settle debts accumulated between 2015 and 2023, and ultimately stabilise electricity supply to homes and businesses.
But while the Federal Government celebrates the move as laying “a foundation for a stable, investor-friendly industry,” ordinary Nigerians remain sceptical.
From Lagos to Kano, Port Harcourt to Jos, citizens say they have heard such promises before—only to be left paying more for darkness.
Finance Minister Wale Edun, last week, explained that the bailout will be executed within four weeks under the coordination of the Debt Management Office (DMO), using sovereign bonds and other instruments to avoid immediate cash strain.
“We are laying the foundation for a stable, investor-friendly power industry. Clearing this backlog will unlock liquidity, restore confidence, and help us deliver more reliable electricity to Nigerians,” Edun assured reporters.
Officials also argue that with subsidy cuts and tariff adjustments already underway, the combined measures could save ₦1.1 trillion annually, money they say will be redirected into infrastructure, health, and education.
*Citizens’ frustration: Paying more, getting less
Despite the assurances, many Nigerians say they have yet to see evidence that such bailouts translate into improved service.
In Lagos, small factory owner Samuel Oladipo expressed anger, “We were told higher tariffs would mean better power. Instead, we run generators almost daily. If ₦4 trillion will change things, let’s see it on the ground. Right now, it feels like pouring water into a basket.”
In Kano, salon operator Hadiza Lawal said the pain is double, “We are ready to pay if the service improves. The problem is that you pay more and still buy fuel. I spend almost half my profit on petrol every week.”
In Port Harcourt, welder Chibuzor Eze lamented the toll on artisans, “When there is no light, we can’t work. Customers leave. They don’t want to pay higher charges when I use the generator. Government should stop telling us stories and show us results.”
In Abuja, university student Falmata Usman voiced scepticism about transparency, “They should publish the repayment schedule openly. We don’t trust these kinds of bailouts. Without monitoring, it’s just another government spending spree.”
And in Jos, civil servant Peter Gyang asked a question many Nigerians share, “They say generation will improve, but what about transmission? If the lines cannot carry the power, what’s the use?”
The bailout comes as six of Nigeria’s eleven electricity distribution companies (DISCOs) remain under court-appointed receivership, raising fears that even if generation improves, consumers may not feel the difference.
Gas supply disputes also linger. GENCOs dependent on gas still owe arrears to suppliers, threatening future stability unless parallel agreements are sealed.
The Ministry of Power confirmed negotiations are ongoing, but insiders warn that debt settlement alone will not guarantee uninterrupted supply.
Data from the Nigerian Electricity Regulatory Commission (NERC) underscores the structural rot: nearly 60 per cent of installed generation capacity sat idle in July 2025 due to grid constraints, poor maintenance, and fuel shortages.
*CSOs demand transparency
Civil society organisations are calling for openness in implementing the ₦4 trillion package.
Energy governance activist Chinedu Okafor said, “Without transparency, this will just be another round of spending with no proof of improved supply. The DMO should publish a clear timetable and issue monthly progress reports.”
Similarly, the Coalition for Energy Justice, a northern-based group, urged the government to tie disbursements to measurable service improvements.
“Nigerians deserve to see not just debts cleared, but electricity hours increased. Anything less will amount to another bailout for inefficiency,” the coalition said in a statement.
For now, the government insists the ₦4 trillion bailout will unlock a new phase of stability in the electricity market. But with distribution bottlenecks, transmission failures, and governance gaps still unresolved, the big question remains:
Will Nigerian homes and businesses finally see the light—or will they continue paying more while generators roar in the background?
