President Bola Tinubu has approved a N3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply across the country.
The approval followed a final review of legacy debts under the Presidential Power Sector Financial Reforms Programme, which accumulated between February 2015 and March 2025.
According to a statement issued on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the Federal Government and stakeholders agreed on N3.3 trillion as a full and final settlement after due verification, describing the move as a fair and transparent resolution of the crisis that has plagued the sector for over a decade.
The statement noted that implementation of the repayment plan had commenced, with 15 power generation companies already signing settlement agreements valued at N2.3 trillion.
It added that the government had so far raised N501 billion to fund the payments, out of which N223 billion had been disbursed, while further disbursements were ongoing.
The government explained that the intervention would strengthen the entire electricity value chain, ensuring improved generation capacity and more stable power supply to homes and businesses.
Speaking on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the initiative 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 effort forms part of broader reforms, including improved metering and service-based tariffs designed to align electricity costs with quality of supply.
Arowolo-Verheijen also said the government was prioritising power supply to industries, businesses, and small enterprises to drive 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.
Tinubu commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, would commence within the current quarter.
