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 designed to restore stability and improve electricity supply nationwide.
In a statement Special Adviser to the President on Information and Strategy Bayo Onanuga said the initiative, under the Presidential Power Sector Financial Reforms Programme, follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement to address the financial obligations.
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 repayments, out of which ₦223 billion has been disbursed, while additional payments are in progress.
Officials say the intervention is expected to stabilise electricity generation by improving liquidity across the power value chain, ensuring that power plants and gas suppliers receive payments necessary to sustain operations.
Speaking on the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the programme is designed to rebuild confidence in the sector and enhance service delivery.
“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 stated.
She added that the reform forms part of broader measures, including improved metering systems and service-based tariffs tied to electricity quality, as well as prioritised power supply to businesses and industries to stimulate economic growth.
According to the Presidency, the reforms are expected to attract investment, create jobs, and deliver more reliable electricity to households and enterprises across the country.
President Tinubu also commended stakeholders for their contributions to resolving longstanding challenges in the sector and confirmed that the next phase of the programme is scheduled to commence within the current quarter.
