President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, a move the Federal Government says will improve electricity supply and restore confidence among investors.
The approval follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, the government and industry stakeholders agreed on ₦3.3 trillion as a full and final settlement.
According to a State House statement issued by presidential spokesman Bayo Onanuga, implementation has already commenced, with 15 power generation companies signing agreements covering ₦2.3 trillion.
“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade,” the statement said.
It added that the Federal Government has raised ₦501 billion so far to fund the payments, with ₦223 billion already disbursed.
“Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, ₦223 billion has been disbursed, with further payments underway,” the statement noted.
Officials say the intervention is expected to stabilize electricity generation by ensuring that power plants and gas suppliers are paid, thereby improving supply to homes and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond clearing debts and is aimed at fixing systemic issues 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 also highlighted ongoing reforms designed to improve service delivery.
“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,” Arowolo-Verheijen added.
She emphasized the government’s focus on economic growth through improved power supply.
“The government is also prioritizing power supply to businesses, industries, and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,” she said.
Summing up the administration’s objective, she noted: “The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
President Tinubu commended stakeholders involved in resolving the long-standing issues and confirmed that the next phase of the programme, known as Series II, will begin later this quarter.