By our Reporter
President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling longstanding debts in Nigeria’s power sector, in a move to restore stability and improve electricity supply across the country.
The approval follows a comprehensive review of legacy debts accrued under the Presidential Power Sector Financial Reforms Programme between February 2015 and March 2025. After verification, the government agreed on ₦3.3 trillion as a full and final settlement to address the financial backlog affecting the sector.
Implementation of the plan has commenced, with 15 power generation companies already signing settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, out of which ₦223 billion has been disbursed, with additional payments ongoing.
The development is expected to improve power generation and overall electricity reliability, as funds flow through the power value chain to support operations and sustainability.
Olu Arowolo-Verheijen,
Special Adviser to the President on Energy, said the initiative goes beyond debt settlement, noting that it is designed to restore confidence in the sector and ensure that key stakeholders, including gas suppliers and power generation companies, are adequately compensated.
She added that the reform programme is part of broader efforts to reposition the sector, including improved metering systems and service-based tariffs that align electricity costs with service delivery.
According to her, the government is also prioritising stable electricity supply to businesses and industries, recognising its importance in driving economic growth, job creation, and productivity.
President Tinubu commended stakeholders for their cooperation in resolving the long-standing issues and confirmed that the next phase of the programme will commence within the current quarter.
