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 improve electricity supply and restore investor confidence.
The approval, announced in a State House press release on Sunday, is part of the Presidential Power Sector Financial Reforms Programme, designed to address legacy liabilities that have hindered the sector’s growth for over a decade.
According to the statement, the debts—accumulated between February 2015 and March 2025—have now undergone a comprehensive verification process, with ₦3.3 trillion agreed upon as a full and final settlement figure to ensure transparency and fairness.
Implementation of the repayment plan is already underway. Fifteen power generation companies have signed settlement agreements valued at ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, out of which ₦223 billion has already been disbursed, with further payments ongoing.
Officials say the intervention is expected to stabilize electricity generation across the country, as improved liquidity in the power value chain will enable generation companies to operate more efficiently.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt settlement and is aimed at rebuilding trust across 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.
Arowolo-Verheijen added that the effort is part of broader reforms, including improved metering systems and service-based tariffs that align electricity costs with quality of supply.
She further noted that the government is prioritising electricity supply to businesses, industries, and small enterprises, stressing that reliable power is critical for job creation, economic growth, and improved livelihoods.
President Tinubu also commended stakeholders who contributed to resolving the sector’s long-standing challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The government expressed optimism that the reforms will lead to more reliable power for households, enhanced support for businesses, and a more efficient electricity system nationwide.