President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria’s power sector, in a move expected to improve electricity reliability across the country.
The approval followed a comprehensive review of liabilities incurred under the Presidential Power Sector Financial Reforms Programme, with debts accumulated between February 2015 and March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement, marking a significant step toward stabilising the sector.
Implementation of the plan is already underway. About 15 power generation companies have signed settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to fund the initiative, with ₦223 billion already disbursed and additional payments in progress.
Officials say the intervention is designed to strengthen the entire electricity value chain by ensuring that key players—especially power plants and gas suppliers—receive overdue payments. This, in turn, is expected to enhance generation capacity and improve overall power supply to homes and businesses.
According to Olu Arowolo-Verheijen, Special Adviser to the President on Energy, the programme goes beyond debt settlement.
“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 initiative forms part of broader reforms, including improved metering and service-based tariffs that align electricity costs with quality of supply.
The administration is also prioritising electricity access for businesses, industries, and small enterprises, recognising reliable power as critical to job creation and economic growth.
President Tinubu commended stakeholders for their roles in addressing the sector’s challenges and confirmed that the next phase of the programme, tagged Series II, will commence within the current quarter.