President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector and improve electricity supply nationwide.
The development was disclosed in a statement on Sunday by the special adviser to the president on information and strategy, Bayo Onanuga, who said the initiative forms part of the Presidential Power Sector Financial Reforms Programme.
According to the statement, the debt accumulated between February 2015 and March 2025 and has now been reviewed and agreed upon as a full and final settlement to ensure transparency and fairness.
“President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme,” the statement read.
Implementation underway
The government said implementation has already begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion.
It added that about ₦501 billion has been raised to fund the payments, with ₦223 billion already disbursed and further payments ongoing.
Officials noted that the repayment plan is expected to stabilise the electricity value chain by ensuring that power producers and gas suppliers receive outstanding payments.
Commenting on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen said the initiative would help restore confidence in 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.
The government said the plan is part of wider reforms aimed at improving service delivery, including enhanced metering and service-based tariffs tied to electricity supply quality.
Priority will also be given to supplying power to industries, businesses, and small enterprises to support economic growth and job creation.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” the adviser added.
President Tinubu commended stakeholders involved in resolving the sector’s legacy issues and confirmed that the next phase of the reforms will commence within the current quarter.
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