President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a move expected to improve electricity supply and restore investor confidence.
The approval follows a comprehensive review of liabilities incurred under the Presidential Power Sector Financial Reforms Programme, addressing legacy debts accumulated between February 2015 and March 2025.
After a verification process, the Federal Government agreed on ₦3.3 trillion as full and final settlement of the obligations, signalling what officials describe as a decisive step towards stabilising the troubled sector.
Implementation of the plan is already underway, 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 additional payments are in progress.
Officials say the intervention is expected to strengthen the entire electricity value chain, leading to more stable power generation and improved reliability of supply to homes and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement to rebuilding trust within the sector.
“This initiative is not just about settling legacy debts, but about restoring confidence across the power value chain—ensuring that gas suppliers are paid, power plants remain operational, and the system functions more efficiently,” she said.
She added that the reforms are part of a broader strategy that includes improved metering and service-based tariffs designed to align electricity costs with quality of supply.
According to her, the government is also prioritising electricity access for industries, businesses and small enterprises, given the critical role of reliable power in job creation and economic growth.
President Tinubu commended stakeholders for their roles in resolving the long-standing issues and confirmed that the next phase of the programme, Series II, will commence within the current quarter.
The administration maintains that the ultimate objective is to deliver more reliable electricity to households, enhance support for businesses, and build a more efficient and sustainable power sector.
