President Bola Ahmed Tinubu has approved a comprehensive payment plan to clear longstanding debts in Nigeria’s power sector, under the Presidential Power Sector Financial Reforms Programme.
The decision follows a final review of legacy liabilities accumulated between February 2015 and March 2025, with ₦3.3 trillion now confirmed as the full and final settlement figure.
According to a statement issued on Sunday by the President’s spokesperson, Bayo Onanuga, implementation of the repayment plan is already in progress.
So far, 15 power generation companies have signed settlement agreements valued at ₦2.3 trillion.
The Federal Government has also raised ₦501 billion to kick-start the process, out of which ₦223 billion has already been disbursed, while additional payments are ongoing.
Insert: This move is expected to improve electricity supply nationwide by stabilising power generation and addressing financial constraints within the sector.
Officials say clearing the debts across the power value chain will enhance generation capacity, improve reliability of electricity for homes and businesses, and unlock fresh investments.
The development is also projected to create jobs and improve overall service delivery in the sector.
Speaking on the initiative, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond just debt repayment.
Insert (Quote): “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 added that the reforms also include improved metering and the introduction of service-based tariffs that reflect the quality of electricity supply.
Arowolo-Verheijen further noted that the government is prioritising electricity supply to businesses, industries, and small enterprises to stimulate economic growth.
Insert (Quote): “The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
President Tinubu commended stakeholders involved in resolving the sector’s legacy issues and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
