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.
The initiative targets legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After a detailed review, the government agreed on ₦3.3 trillion as a final settlement to ensure transparency and fairness.
According to a statement by presidential aide Bayo Onanuga, implementation is already underway, with 15 power plants signing agreements worth ₦2.3 trillion. So far, ₦501 billion has been raised, with ₦223 billion already disbursed.
Officials say the plan will stabilise electricity generation and improve reliability across the power value chain.
The President’s Special Adviser on Energy, Olu Arowolo-Verheijen, noted that beyond clearing debts, the reform aims to restore confidence in the sector, ensure payments to gas suppliers, and keep power plants running efficiently.
She added that the initiative will also support broader reforms such as improved metering and service-based tariffs, while prioritising power supply to businesses and industries to drive economic growth.
Tinubu commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the reform programme will begin this quarter.