President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move to restore reliable electricity supply across the country.
According to a State House press release issued on Sunday, the approval followed a comprehensive review of legacy debts accumulated under the Presidential Power Sector Financial Reforms Programme over a ten-year period, from February 2015 to March 2025.
The statement was signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
The statement noted that after verification, the Federal Government and stakeholders agreed on ₦3.3 trillion as a full and final settlement figure, describing the resolution as fair and transparent.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed, while further payments are ongoing.
The development is expected to stabilise electricity generation and improve supply nationwide, as funds flow through the power value chain to support operations of generation companies and gas suppliers.
Explaining the significance of the initiative, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement.
“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,” she said.
She added that the initiative forms part of broader reforms, including improved metering and the introduction of service-based tariffs that align electricity costs with the quality of supply.
The government, she said, is also prioritising electricity supply to businesses, industries, and small enterprises to stimulate job creation and economic growth.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
President Tinubu commended stakeholders for their support in resolving the sector’s legacy challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
