Abuja residents have expressed optimism that, with the federal government’s approval of N3.3 trillion to settle the long-standing debts owed to generation companies, electricity supply will improve.

The residents spoke in Abuja on Tuesday.

Bayo Onanuga, presidential spokesman, in a statement, said President Bola Tinubu approved the  fund to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

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

The long-standing debts accumulated between February 2015 and March 2025 following verification.

He said ₦3.3 trillion was agreed as a full and final settlement, ensuring a fair and transparent resolution.

There have been power outages in parts of the country for some months, while in other areas for some weeks and days.

Following the development, many businesses had collapsed.

The Nigerian Independent System Operator attributed the continued decline in electricity generation on the national grid to persistent gas supply constraints affecting several thermal power plants.

Pius Ogiemudia, an engineer resident in Orozo, said paying the debt would improve the electricity supply, as power generation companies would be able to pay for the gas supplied to them.

According to him, the payment will ensure a consistent gas supply to thermal plants, which account for about 70 per cent of the country’s  power generation.

Stephen Adelaja, an accountant residing in Kuje, said that settling the debt by the Federal Government would reduce the incidence of load shedding and grid collapses, leading to more reliable electricity for homes and businesses.

Mr Adelaja said that the power supply had been epileptic for a long time, and with the payment, electricity would improve.

Caroline Odeh, a resident of Lugbe, said that the move was seen as a “strategic reset” intended to attract private capital and encourage investment in generation and distribution infrastructure.

Ms Odeh said that stabilising the power sector would support industrialisation, create jobs, and foster economic growth, particularly for small enterprises.

(NAN)