President Tinubu approves a N3.3 trillion power sector payment plan to clear legacy debts, boost electricity generation, restore investor confidence, and improve reliable power supply for homes and businesses nationwide.
President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
The debt repayment plan followed a final review of legacy obligations that have burdened the power sector for more than a decade, with liabilities accumulated between February 2015 and March 2025.
After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement aimed at restoring confidence and ensuring a transparent resolution across the electricity value chain.
Implementation has already commenced, with 15 power plants signing settlement agreements valued at ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
Officials said the intervention is expected to stabilise electricity generation as funds flow through the power value chain, enabling plants to operate more efficiently and improve supply reliability nationwide.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt settlement and is designed to rebuild confidence across the sector.
“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 plan forms part of broader reforms, including improved metering and service-based tariffs linking electricity payments to quality of supply.
According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises to support job creation, strengthen livelihoods, and drive economic growth.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
President Tinubu commended stakeholders who contributed to resolving legacy issues in the power sector and confirmed that the next phase of the programme, Series II, will commence this quarter.
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