President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a move expected to improve electricity supply and restore confidence across the industry.
The development follows a comprehensive review of legacy debts under the Presidential Power Sector Financial Reforms Programme, which accumulated between February 2015 and March 2025.
According to a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the agreed ₦3.3 trillion represents a full and final settlement after a thorough verification process designed to ensure fairness and transparency.
Implementation of the plan is already underway. So far, 15 power generation companies have signed settlement agreements totaling ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, out of which ₦223 billion has already been disbursed, with additional payments ongoing.
Officials say the intervention is expected to significantly stabilize Nigeria’s electricity value chain by ensuring that power generation companies and gas suppliers receive due payments, thereby enabling more consistent operations.
Speaking on the initiative, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, described the programme as a critical step toward reviving the sector.
“This initiative goes beyond settling debts. It is about rebuilding trust within the power sector — ensuring gas suppliers are paid, generation companies remain operational, and the system delivers more reliable electricity,” she said.
She added that the payment plan forms part of a broader reform agenda, which includes improvements in metering and the introduction of service-based tariffs tied to the quality of electricity supplied.
Arowolo-Verheijen also noted that the government is prioritizing electricity supply to key sectors such as businesses, industries, and small enterprises, given the role of stable power in job creation and economic growth.
“The objective is clear — to provide more reliable electricity for households, strengthen support for businesses, and create a more efficient power system for all Nigerians,” she added.
President Tinubu commended stakeholders for their contributions toward resolving the sector’s long-standing challenges and confirmed that the next phase of the programme, known as Series II, is set to commence within the current quarter.
Reported with attribution to Bayo Onanuga, Special Adviser to the President on Information and Strategy.
