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Tinubu approves N3.3tn plan to clear power sector debts

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President Bola Tinubu has approved a N3.3 trillion payment plan to settle outstanding debts in Nigeria’s electricity sector under the Presidential Power Sector Financial Reforms Programme.

The development was disclosed in a statement issued on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

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

According to the presidency, the decision followed a final review of legacy debts that have plagued the power sector for over a decade.

The government said the liabilities accumulated between February 2015 and March 2025, adding that after verification, ₦3.3 trillion was agreed as a full and final settlement.

Implementation has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion, the statement noted .

Mr Onanuga said the federal government has raised ₦501 billion so far to fund the payments, out of which ₦223 billion has been disbursed, with further payments ongoing.

The intervention comes amid persistent electricity shortages across Nigeria, forcing households and businesses to rely heavily on petrol and diesel generators and solar alternatives. Similarly, electricity grids have collapsed multiple times this year, leaving millions in the dark across the country.

The power supply challenge has significantly increased operating costs for businesses, many of which pass the additional burden on to consumers through higher prices of goods and services.

Labour opposition

The approval comes months after the Nigeria Labour Congress (NLC) criticised demands by power generation companies for financial intervention.

In February, the union described a reported N6 trillion demand by the companies as “a clandestine scheme” to siphon public funds under the guise of sectoral support.

The NLC accused the Association of Power Generation Companies (APGC) of seeking an unjustifiable bailout, arguing that the privatisation of the power sector has failed to deliver improved generation capacity or reliable service. At the heart of the dispute is the federal government’s reported contemplation of a N3 trillion intervention for GENCOs.

The union also rejected claims that it lacked the expertise to comment on electricity market issues, noting that its affiliates include workers within the sector.

According to the NLC, a key concern is that assets reportedly acquired for about N400 billion are now linked to demands running into trillions of naira, despite what it described as stagnant output since privatisation.

“This is not economics; this is plunder. They call it business, but we call it a heist,” NLC President Joe Ajaero said at the time.

Expected impact

The federal government said the debt settlement is expected to improve liquidity across the power value chain and enhance electricity generation.

It noted that timely payments to gas suppliers and generation companies would help stabilise operations and improve service delivery.

“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,” said Olu Arowolo-Verheijen, Special Adviser on Energy to the President.

She added that the initiative forms part of broader reforms, including improved metering and service-based tariffs linked to electricity supply quality.

The government also said it is prioritising power supply to industries, businesses, and small enterprises to support economic growth and job creation.

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

President Tinubu commended stakeholders involved in resolving the sector’s long-standing issues and confirmed that the next phase of the programme (Series II) will commence this quarter.

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Business

FAAN begins earning MMA2 revenue as 20-year dispute with Bi-Courtney ends

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The Federal Airports Authority of Nigeria (FAAN) has begun earning revenue from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos following a settlement between the Federal Government and Bi-Courtney Aviation Services Limited over a dispute that lasted nearly two decades.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday during the formalisation of the settlement involving the Federal Government, FAAN, Bi-Courtney and Stabilini Visinoni Limited.

“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from MMA2,” Mr Keyamo said.

The agreement provides for the resumption of concession fee payments to FAAN and the reciprocal waiver of specified historical financial and other claims by the parties.

Mr Keyamo said the Federal Executive Council (FEC) approved the framework for the negotiated settlement on 30 April 2026, following discussions aimed at resolving the long-running dispute.

What the settlement changes

Under the revised agreement, Bi-Courtney has agreed to waive its outstanding claims against the Federal Government, while the government and FAAN will relinquish specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the agreement.

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The minister said the arrangement was intended to resolve past disagreements and establish clearer contractual obligations for the parties going forward.

The settlement also addresses a dispute over the General Aviation Terminal (GAT), commonly known as the Old Domestic Airport.

According to Mr Keyamo, the revised agreement recognises the terminal as the property of the Federal Government, to be operated by FAAN.

The minister said the government had agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s capacity.

The agreement also restores rights and provides for separate lease arrangements covering a four-star hotel and conference centre near the airport. The facilities have remained unfinished for years.

Mr Keyamo said the government would retain regulatory oversight over security, access, emergencies and maintenance standards, while the parties would work together to implement the revised arrangements.

Background to the dispute

In April, PREMIUM TIMES had reported that the Federal Government had reached a settlement with Bi-Courtney to resolve the long-running dispute over MMA2 after years of litigation and disagreements over the airport concession.

Mr Keyamo at the time said the Federal Executive Council (FEC) had approved the negotiated settlement, which included concessions by both parties, revised operational arrangements and plans to restore government revenue from the terminal.

The dispute originated from a concession agreement signed on 24 April 2003 involving the Federal Government, Bi-Courtney and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal.

The agreement initially covered 12 years from 7 May 2007 but was subsequently extended to 36 years.

Disagreements over contractual obligations, financial claims and the scope of the concession led to multiple court cases across successive administrations.

Bi-Courtney maintained that it had been denied benefits under the concession, while FAAN asserted its own financial entitlements and responsibility to protect public airport assets.

READ ALSO: FAAN steps up airport surveillance as Nigeria confirms Ebola case in Abuja

The dispute also involved the ownership of the General Aviation Terminal and financial claims connected to the Asset Management Corporation of Nigeria.

Mr Keyamo said the latest settlement followed negotiations between the government and the chairman of the Bi-Courtney Group, Wale Babalakin, with legal, commercial and technical teams involved in the process.

He added that the agreement would give Bi-Courtney greater certainty to invest in the terminal while allowing the government to resume revenue collection and plan airport development under the revised framework.

He urged FAAN and Bi-Courtney to ensure that the settlement resulted in completed facilities, reliable services and improved airport operations.

“The travelling public should see the result in functioning facilities and dependable service. That is how the value of this settlement will be measured,” he said.


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Business

How Your Side Hustle Income Ends Up in Your RSA

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BY NKECHI NAECHE-ESEZOBOR—The income you save through the various side hustles can be contributed into your Retirement Savings Account (RSA).

For workers in the formal sector—such as those in federal government agencies, teachers, parastatals, university lecturers, staffs etc.—this can be contributed as an additional fund via voluntary contributions.

While, for those in the informal sector—such as market women, barbers, traders, students, petty traders, shop owners, etc.—their contributions will go into their Personal Pension Plan account.

All of these must go through Pension Fund Administrators (PFAs) approved by the National Pension Commission, (PenCom).

The post How Your Side Hustle Income Ends Up in Your RSA appeared first on Business Today NG.

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