President Bola Tinubu has approved ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
The approval followed a comprehensive review of legacy debts accumulated between February 2015 and March 2025, which have affected the stability and efficiency of electricity supply across the country.
According to the State House, the agreed sum represents a full and final settlement after verification, marking a major step towards addressing financial challenges in the sector.
Implementation of the plan has commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion.
The Federal Government has so far raised ₦501 billion, out of which ₦223 billion has already been disbursed, while further payments are ongoing.
The government says the intervention is expected to improve liquidity within the power value chain, leading to more stable electricity generation and enhanced reliability of supply to consumers.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, explained that the initiative was designed to restore confidence in the sector by ensuring that gas suppliers are paid and power plants remain operational.
She added that the programme forms part of broader reforms, including improved metering and the introduction of service-based tariffs that align electricity costs with the quality of supply.
The administration also reaffirmed its commitment to prioritising electricity supply to businesses, industries, and small enterprises as part of efforts to stimulate economic growth, create jobs, and support livelihoods.
President Tinubu commended stakeholders involved in resolving the sector’s legacy issues and announced that the next phase of the reform programme is expected to commence within the current quarter.
Bello Wakili
