President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and restoring more reliable electricity supply across the country.
The initiative, under the Presidential Power Sector Financial Reforms Programme, follows a comprehensive review of legacy debts that have weighed down the industry for over a decade. These liabilities, accumulated between February 2015 and March 2025, have now been verified, with ₦3.3 trillion agreed upon as a final settlement figure.
Implementation of the plan is already underway. Fifteen power generation companies have signed settlement agreements worth ₦2.3 trillion. So far, the Federal Government has secured ₦501 billion to fund the process, with ₦223 billion already disbursed and additional payments ongoing.
The move is expected to improve electricity generation and overall supply, as funds begin to flow across the power value chain. With better financial stability, power plants are likely to operate more efficiently, leading to more consistent electricity for homes and businesses.
According to the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, the programme goes beyond debt repayment, aiming to rebuild trust within the sector. She noted that ensuring timely payments to gas suppliers and power producers is key to keeping the system running smoothly.
She also highlighted ongoing reforms, including improved metering and service-based tariffs designed to align electricity costs with the quality of supply. The government, she added, is prioritising power delivery to industries, businesses, and small enterprises to drive economic growth and job creation.
President Tinubu commended stakeholders involved in resolving the sector’s financial challenges and confirmed that the next phase of the programme is set to commence later this quarter.
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