President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and improving electricity supply nationwide.
In a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency said the move follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, ₦ 3.3 trillion was agreed upon as the final settlement figure, marking a significant step toward resolving over a decade of financial challenges in the sector.
Implementation is already underway. Fifteen power generation companies have signed settlement agreements valued at ₦2.3 trillion. To support the rollout, the Federal Government has raised ₦ 501 billion, out of which ₦223 billion has been disbursed, with additional payments in progress.
The development is expected to positively impact electricity supply across the country. As funds flow through the power value chain, generation capacity is likely to stabilise, leading to more reliable electricity for homes and businesses. Improved financial stability in the sector is also projected to attract investment, create jobs, and enhance overall service delivery.
According to the President ’ s Special Adviser on Energy, Olu Arowolo-Verheijen, the initiative goes beyond debt settlement. She noted that it is designed to rebuild confidence in the sector by ensuring gas suppliers are paid, power plants remain operational, and the electricity system functions more efficiently.
She added that the programme aligns with broader reforms, including improved metering systems and service-based tariffs that link electricity costs to the quality of supply. The government is also prioritising power delivery to businesses, industries, and small enterprises, recognising reliable electricity as essential for economic growth and job creation.
President Tinubu commended stakeholders for their roles in addressing the sector’s long-standing issues and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
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