President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, in a move the Federal Government says will help restore more reliable electricity supply across the country.
The approval, announced in a State House press release, is part of the Presidential Power Sector Financial Reforms Programme and follows a final review of legacy debts that have burdened the electricity value chain for over a decade.
According to the statement, the outstanding liabilities accumulated between February 2015 and March 2025. After a verification process, the Federal Government and stakeholders agreed on ₦3.3 trillion as a full and final settlement of the debts.
Implementation of the repayment plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion.
The government disclosed that it has so far raised ₦501 billion to support the exercise, out of which ₦223 billion has already been disbursed, while additional payments are currently underway.
Officials said the intervention is expected to improve stability in electricity generation by ensuring that power plants and other operators in the value chain receive much-needed financial support.
The Presidency said the settlement would strengthen confidence in the sector, enhance generation capacity, and improve electricity reliability for homes and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt repayment and is designed to restore confidence across the power 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.
She added that the debt settlement is part of broader reforms already being implemented, including improved metering and service-based tariffs that align electricity payments with the quality of supply received by consumers.
Arowolo-Verheijen also noted that the government is prioritising electricity supply to businesses, industries, and small enterprises, stressing that reliable power remains critical to job creation, economic growth, and improved livelihoods.
President Tinubu commended all stakeholders involved in resolving the long-standing challenges in the sector and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
