President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria’s power sector and improving electricity supply across the country.
The decision follows a comprehensive review of liabilities accumulated under the Presidential Power Sector Financial Reforms Programme over a ten-year period, spanning February 2015 to March 2025. According to a statement issued by presidential spokesperson Bayo Onanuga, the agreed sum represents a full and final settlement of the verified debts.
Implementation of the repayment plan is already underway. So far, 15 power generation companies have signed settlement agreements totaling ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, with ₦223 billion already disbursed and additional payments ongoing.
Officials say the intervention is expected to significantly improve electricity generation and overall service delivery. By settling outstanding obligations, power plants and gas suppliers will receive the financial support needed to operate more efficiently, leading to more stable electricity supply nationwide.
Olu Arowolo-Verheijen, Special Adviser to the President on Energy, explained that the initiative is designed not only to clear debts but also to rebuild confidence across the power value chain. She noted that ensuring timely payments to stakeholders would enable power plants to function optimally and strengthen the reliability of the entire system.
The reform programme is part of a broader strategy to overhaul the electricity sector. Other ongoing efforts include the introduction of improved metering systems and service-based tariffs, which link consumer payments to the quality of electricity received.
Additionally, the government is focusing on prioritising power supply to key economic sectors such as industries, businesses, and small enterprises. Reliable electricity, officials say, is essential for job creation, economic growth, and improved livelihoods.
President Tinubu also commended stakeholders who contributed to resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
Overall, the initiative aims to deliver a more efficient, reliable, and sustainable power system for Nigerians.
