President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, in a move to improve electricity supply across the country.
The decision follows a review under the Presidential Power Sector Financial Reforms Programme, targeting legacy debts accumulated between February 2015 and March 2025. The Federal Government agreed on ₦3.3 trillion as a final settlement after verification of claims.
Implementation has already begun, with 15 power generation companies signing agreements worth ₦2.3 trillion. So far, ₦501 billion has been raised, with ₦223 billion already disbursed, while further payments are ongoing.
The initiative is expected to boost liquidity in the power sector, ensuring timely payments to generation companies and gas suppliers, thereby stabilising electricity generation and improving service delivery.
According to the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, the programme is designed not only to settle debts but also to restore investor confidence and drive broader reforms, including improved metering and service-based tariffs.
The government also emphasised plans to prioritise power supply to businesses and industries to support economic growth and job creation.
The development was announced in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, who confirmed that the next phase of the reform programme is expected to commence soon.
