President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, marking a major step toward improving electricity supply across the country.

 

The initiative falls under the Presidential Power Sector Financial Reforms Programme and follows a comprehensive review of legacy debts that have plagued the industry for over a decade. These debts, accumulated between February 2015 and March 2025, have been a significant barrier to stable power generation and distribution.

 

After verification, the Federal Government and stakeholders agreed on ₦3.3 trillion as a full and final settlement figure, in what officials describe as a fair and transparent resolution process.

 

Implementation of the plan is already underway. So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion. The government has raised ₦501 billion to fund the payments, with ₦223 billion already disbursed and additional releases in progress.

 

Energy experts say the move is expected to boost confidence across the electricity value chain. By clearing debts owed to power generation companies and gas suppliers, the plan is designed to ensure more consistent operations and improved power output nationwide.

 

“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,” said Olu Arowolo-Verheijen, Special Adviser on Energy to the President.

 

She added that the initiative is part of broader reforms, including improved metering systems and service-based tariffs that align electricity costs with the quality of supply received by consumers.

 

The government is also prioritising electricity supply to businesses, industries, and small enterprises, highlighting the role of stable power in job creation and economic growth.

 

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen said.

 

President Tinubu commended stakeholders for their cooperation in resolving the sector’s legacy challenges and confirmed that the next phase of the programme, known as Series II, is scheduled to begin later this quarter.