President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling longstanding debts in Nigeria’s power sector, in a move expected to improve electricity supply across the country.
The approval, announced in a State House press release on Sunday, is part of the Presidential Power Sector Financial Reforms Programme designed to resolve legacy liabilities that have plagued the sector for over a decade.
According to the statement, the debts accumulated between February 2015 and March 2025. Following a comprehensive verification process, the Federal Government agreed on ₦3.3 trillion as a full and final settlement to ensure transparency and fairness.
Implementation of the plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while further payments are ongoing.
Officials say the intervention is expected to stabilise electricity generation by improving liquidity across the power value chain, thereby enhancing reliability of supply to consumers.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement, describing it as a strategic effort to rebuild confidence 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 reforms also include improved metering and service-based tariffs that align electricity charges with quality of supply, alongside efforts to prioritise power for businesses and industries to support economic growth and job creation.
President Tinubu commended stakeholders for their role in addressing the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
