President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector and restoring reliable electricity supply across the country.
The approval, announced in a State House press release on Sunday, is part of the Presidential Power Sector Financial Reforms Programme designed to address legacy liabilities that have hindered the sector’s growth for over a decade.
According to the statement, the debts—accumulated between February 2015 and March 2025—were reviewed and verified, with ₦3.3 trillion agreed upon as a full and final settlement to ensure a transparent and fair resolution.
Implementation of the repayment plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
The government said the intervention is expected to improve electricity generation and supply nationwide, as funds flow through the power value chain to support operations and stabilise output.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, noted that the programme goes beyond debt settlement, describing it as a critical step toward restoring confidence in the sector.
She explained that the reforms would ensure gas suppliers are paid, power plants remain operational, and the overall system functions more efficiently.
Arowolo-Verheijen added that the initiative complements other ongoing reforms, including improved metering systems and service-based tariffs that align electricity costs with quality of supply.
She further stated that the government is prioritising electricity supply to businesses, industries, and small enterprises to stimulate job creation and economic growth.
President Tinubu commended stakeholders for their role in addressing the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
