President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector and restoring reliable electricity supply across the country.
The approval follows a final review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, the amount was agreed upon as a full and final settlement to ensure a fair and transparent resolution.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements totalling ₦2.3 trillion. The Federal Government has raised ₦501 billion to support the payments, out of which ₦223 billion has already been disbursed, while further payments are ongoing.
Officials say the intervention is expected to stabilise electricity generation by ensuring that funds reach key players across the power value chain. With improved financial support for power plants, electricity supply is projected to become more reliable.
The government also believes that stabilising the sector will attract more investment, create jobs, and improve service delivery nationwide.
Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement, describing it as a strategic effort to restore confidence in the sector.
She noted that the initiative would ensure timely payments to gas suppliers, enable power plants to operate efficiently, and improve overall system performance. According to her, the reforms are part of a broader agenda that includes enhanced metering and service-based tariffs linked to the quality of electricity supplied.
She further stated that priority is being given to supplying power to businesses, industries, and small enterprises, given the critical role of electricity in economic growth, job creation, and livelihoods.
President Tinubu commended stakeholders involved in resolving the sector’s legacy challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
