President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move the Federal Government says will improve electricity reliability and attract new investment.
The approval follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, the government agreed on ₦3.3 trillion as a final settlement figure to resolve the liabilities.
Implementation of the plan is already underway. According to the State House, 15 power generation companies have signed settlement agreements totaling ₦2.3 trillion. The government has raised ₦501 billion so far, with ₦223 billion already disbursed and additional payments in progress.
Officials say the intervention is expected to stabilize electricity generation by ensuring that power producers and gas suppliers receive outstanding payments. This, in turn, should lead to more consistent power supply across the country.
Speaking on the development, Olu Arowolo-Verheijen, Special Adviser on Energy to the President, said the initiative goes beyond debt repayment.
“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 systems and service-based tariffs designed to link electricity costs to quality of supply.
The government also emphasized its focus on prioritizing electricity for businesses and industries, noting that reliable power is essential for job creation, economic growth, and improved livelihoods.
President Tinubu commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
The administration says the ultimate goal is to deliver more reliable electricity to homes and businesses while strengthening Nigeria’s overall power infrastructure.
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