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 expected to significantly improve electricity supply across the country.
The approval, announced in a State House press release on Sunday issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
According to the statement, the verified sum of ₦3.3 trillion represents a “full and final settlement” designed to ensure transparency and restore confidence in the sector.
Implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, with additional payments ongoing.
The presidency noted that the intervention is expected to stabilise electricity generation by ensuring that key players across the power value chain, including gas suppliers and generation companies, receive their payments promptly. This, it said, would lead to more reliable electricity for households and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, explained that the programme goes beyond debt settlement, describing it as a critical step toward rebuilding trust in the sector. “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 service-based tariffs. “It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive,” she stated.
Arowolo-Verheijen further emphasised the government’s focus on economic growth through improved energy supply. “The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy. 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 roles in addressing the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
