President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria’s power sector and restoring reliable electricity supply across the country.
The approval follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
The government described the agreed sum as a full and final settlement designed to bring transparency and stability to the sector.
According to a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday , the implementation process is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion.
The statement noted that the Federal Government has so far raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed, with additional payments in progress.
Officials say the intervention is expected to improve electricity generation and overall supply, as settling debts across the power value chain will enable power plants to operate more efficiently and consistently.
Special Adviser on Energy to the President, Olu Arowolo-Verheijen, explained that the initiative goes beyond debt repayment, noting that it is aimed at restoring confidence in the sector, ensuring gas suppliers are paid, and enabling smoother operations across the system.
She added that the reform programme also includes improved metering and service-based tariffs, which will align electricity costs with the quality of service delivered to consumers.
The President also emphasized the importance of prioritising electricity supply to businesses, industries, and small enterprises, noting that reliable power is key to job creation and economic growth.
President Tinubu commended stakeholders for their support in addressing the sector’s long-standing challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
Editor: Ebuwa Omo-Osagie
