Business

Tinubu Approves ₦3.3 Trillion to Clear Power Sector Debts

Published

2 months ago

April 6, 2026

Preport

President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.

The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.

Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.

What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.

And as the sector stabilises, more investment, more jobs, and better service will follow.

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” explained Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu.

“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.

“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.

President Tinubu has commended all stakeholders who supported efforts to resolve the legacy issues in the power sector. He has also confirmed that the next phase (Series II) will begin this quarter.

The post Tinubu Approves ₦3.3 Trillion to Clear Power Sector Debts appeared first on Business Today NG.

Business

NAICOM Ends 18-Month Intervention, Hands African Alliance Insurance Back to New Board

Published

3 hours ago

June 16, 2026

Preport

The National Insurance Commission (NAICOM) has formally handed over operational control of African Alliance Insurance Plc to a newly constituted, shareholder-nominated Board of Directors.

The transition marks the official conclusion of an intensive 18-month regulatory intervention that commenced in October 2024.

The regulatory intervention succeeded in stabilizing the distressed underwriting firm, resolving critical structural challenges, and rebuilding stakeholder confidence. During the 18-month period, the interim management cleared up to 15 months of annuity arrears, settled outstanding legacy claims, and restored vital liquidity to the firm through targeted asset sales and portfolio transfers. Comprehensive forensic and actuarial reviews were also finalized to address past regulatory breaches.

Speaking during the handover, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, charged the incoming directors to strictly uphold robust corporate governance frameworks, maintain absolute operational transparency, and prioritize the prompt settlement of customer claims.

Under the new administrative structure, African Alliance Insurance Plc will be led by Rear Admiral Anthony Odogba Isa (Rtd) as Chairman, alongside Mr. Abayomi Olakunle Olukeye, who assumes the role of Managing Director.

While day-to-day operations have returned to the board, NAICOM confirmed it will maintain close regulatory oversight of the company to monitor its ongoing recapitalization efforts and long-term solvency progress.

The Commission formally took over the board and management of African Alliance Insurance Plc on October 30, 2024.

According to NAICOM exercised its regulatory intervention powers under the NAICOM Act for several critical reasons:

Insolvency and Financial Instability: Following extensive financial and operational monitoring, NAICOM identified deep-seated insolvency issues that threatened the company’s ability to operate safely and soundly.

Failure to Meet Obligations: The company faced a massive public outcry and heavy criticism after failing to pay its policyholders and annuitants, leading to prolonged delays in settling claims.

Governance and Operational Lapses: The regulator discovered major corporate governance failures, indicating that the previous leadership had mismanaged the firm’s assets—which consisted heavily of policyholders’ funds—and exposed the company to extreme risk.

The primary objective of the 2024 takeover was to safeguard public interest, protect policyholders, and implement critical structural reforms to stabilize the firm before handing it back to its shareholders.

Business

Nigeria’s inflation up 15.93% amid high food prices

Published

11 hours ago

June 16, 2026

Preport

Nigeria’s headline inflation rate rose to 15.93 per cent in May 2026, extending the upward trend recorded since the beginning of the year, according to the latest data released by the National Bureau of Statistics (NBS).

The figure shows an increase from the 15.69 per cent recorded in April, indicating that prices of goods and services continued to climb despite a slower monthly rate of inflation.

Data contained in the Consumer Price Index (CPI) report released by the NBS on Monday showed that the May inflation rate was 0.24 percentage points higher than the previous month.

However, on a month-on-month basis, inflation slowed to 1.75 per cent in May from 2.13 per cent recorded in April.

The NBS said the latest figures suggest that while prices are still rising, the rate of increase has moderated from the previous month.

“On a year-on-year basis, the Headline inflation rate rose to 15.93%, up from 15.69% in April 2026,” the bureau stated.

The latest increase marks the third consecutive rise in headline inflation this year.

Food inflation

Food prices, which remain one of the biggest drivers of household spending, also rose during the month.

According to the NBS, food inflation rose to 16.96 per cent in May from 16.68 per cent in April.

The bureau attributed the increase to price changes in key staple foods consumed nationwide.

Items contributing to the rise include fresh onions, maize grains, melon (egusi), water yams, cassava flour, crayfish, fresh pepper, tomatoes, wheat grains, cassava tubers, yam tubers, sweet potatoes, ginger, plantain, and cowpea.

Despite the annual increase, the monthly food inflation rate declined to 2.98 per cent from 3.63 per cent recorded in April, suggesting a slower pace of food price increases during the month.

The report showed significant differences in food inflation across states.

On a year-on-year basis, Adamawa recorded the highest food inflation rate at 29.62 per cent, followed by Kwara at 28.47 per cent and Rivers at 28.40 per cent.

Borno recorded the lowest food inflation rate at -6.53 per cent, while Taraba and Bayelsa posted 1.13 per cent and 5.99 per cent, respectively.

On a month-on-month basis, Bauchi recorded the highest food inflation rate at 7.73 per cent, followed by Ogun at 6.86 per cent and Jigawa at 6.69 per cent.

In contrast, Niger recorded the slowest increase at 3.54 per cent, while Katsina and Gombe recorded negative food inflation rates of 3.48 per cent and 2.22 per cent, respectively.

The latest inflation figures come as many households continue to grapple with high living costs despite recent signs of economic stabilisation.

Food remains the largest component of consumer spending for most Nigerians, making changes in food prices a key indicator of household welfare.