The Federal Government’s decision to pay about N333 billion to electricity generation companies (GenCos) under its power sector debt settlement programme and to issue another N729 billion bond to clear legacy liabilities in the Nigerian Electricity Supply Industry (NESI) is, on its face, a welcome intervention.

A market burdened by unpaid obligations cannot function efficiently or attract the level of investment required to expand generation and improve electricity supply.

Government officials have explained that the initiative is intended to restore liquidity, honour contractual obligations and rebuild investors’ confidence in the power sector.

According to the Presidency, over N501 billion has already been deployed under the first phase of the programme through a combination of cash payments and bond instruments. In contrast, the latest bond issuance is expected to complete the first phase of the Presidential Power Sector Debt Reduction Programme.

Settling verified debts is a responsible fiscal obligation. Governments must honour legitimate contractual commitments if they expect investors to have confidence in the Nigerian economy. However, Nigerians have every reason to ask the question that matters most: Will this translate into improved electricity supply?

That question is unavoidable because this is not the first time huge public funds have been committed to rescuing the electricity sector. Since the privatisation of the power industry in 2013, successive administrations have announced intervention funds, market support facilities, debt repayments, tariff adjustments, policy reforms and restructuring programmes, all aimed at stabilising the sector. Yet electricity supply remains grossly inadequate for a country of over 200 million people.

Millions of households still endure prolonged blackouts. Manufacturers continue to spend enormous resources on self-generation. Small and medium-sized enterprises struggle under the crushing cost of diesel and petrol. Hospitals, schools and other essential institutions remain vulnerable to unstable power supply. The economy continues to pay a heavy price for a problem that should have been resolved long ago.

Against this backdrop, Nigerians are entitled to be sceptical. They have heard impressive figures before. What they now seek are measurable outcomes.

Government should therefore go beyond announcing how much has been paid. It should explain, in clear and transparent terms, how the liabilities being settled were verified. The public deserves to know how the N333 billion payable to participating GenCos was computed, the contractual basis of the claims and the independent verification process adopted before public funds were committed. Transparency is indispensable if public confidence is to be sustained.

Equally important is the need for the government to demonstrate fiscal discipline within its own institutions. For years, Ministries, Departments and Agencies accumulated enormous unpaid electricity bills, thereby worsening the liquidity crisis that now requires another public bailout. Government cannot demand financial discipline from market participants while failing to meet its own obligations. Public institutions must consistently pay for the electricity they consume.

There is also an irony that should not be ignored. Increasingly, government institutions are abandoning the national grid in favour of solar-powered installations. While the transition to renewable energy is commendable and consistent with global energy trends, it creates an unfortunate impression when government offices enjoy alternative sources of electricity while ordinary Nigerians remain trapped in the failures of the public grid. Renewable energy should complement—not become an escape from—the urgent responsibility of fixing the national electricity infrastructure.

This latest intervention also underscores the need for a comprehensive review of Nigeria’s electricity privatisation programme. More than a decade after the assets were transferred to private operators, the expected gains in efficiency, investment and service delivery have not materialised to the extent envisaged. Generation remains inadequate, transmission infrastructure is fragile, distribution companies continue to struggle with technical and commercial losses, while consumers are burdened with poor service and estimated billing.

The recurring need for government bailouts raises legitimate questions about the sustainability of the existing market structure. If private operators cannot remain financially viable without repeated injections of public funds, then policymakers must objectively reassess the regulatory framework, investment obligations, market governance and overall architecture of the privatisation exercise. No reform should be regarded as too sacred to review when its outcomes consistently fall short of public expectations.

Nigeria cannot continue to expend hundreds of billions of naira on interventions without demanding measurable improvements in electricity generation, transmission and distribution. Public expenditure must produce public value. Citizens deserve to know the benchmarks against which the success of this debt settlement programme will be assessed.

Electricity remains the backbone of industrialisation, economic growth and national competitiveness. Without reliable power, efforts to revive manufacturing, create jobs, attract investment and reduce the cost of doing business will continue to encounter serious obstacles.

The Federal Government has taken another significant financial step. It should now match that commitment with transparency, regulatory discipline, institutional accountability and measurable improvements in electricity supply. Nigerians have listened to promises for decades. What they now expect is not another announcement, but a power sector that works.

Until Nigerians can confidently switch on their lights, manufacturers can operate without generators, inverters or solar and businesses can rely on stable electricity, every fresh intervention in the power sector will inevitably be judged not by the billions spent, but by the watts delivered.