President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and restoring reliable electricity supply across the country.
The approval followed a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement to address the liabilities that have hampered the sector for over a decade.
Implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. So far, the government has raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, with additional payments in progress.
According to the Presidency, the intervention is expected to stabilise electricity generation by ensuring that power plants receive the financial support needed to operate efficiently. This, in turn, is projected to improve electricity reliability for households and businesses nationwide.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement, describing it as a critical step toward rebuilding confidence in the power 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 designed to align electricity costs with the quality of service provided.
The government is also prioritising power supply to key sectors such as industries and small businesses to stimulate economic growth, create jobs, and support livelihoods.
President Tinubu commended stakeholders for their role in resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
