President Bola Tinubu has approved a comprehensive payment plan to clear longstanding debts in Nigeria’s power sector, signalling a major step towards stabilising electricity supply nationwide.
The approval covers liabilities under the Presidential Power Sector Financial Reforms Programme, following a final review of legacy debts that have plagued the industry for over a decade.
The debts, accumulated between February 2015 and March 2025, have now been pegged at ₦3.3tn as full and final settlement, according to the President’s spokesman, Bayo Onanuga.
Onanuga disclosed that implementation of the repayment plan has commenced, with 15 power generation companies already signing settlement agreements worth ₦2.3tn.
He added that the Federal Government has so far raised ₦501bn to fund the exercise, with ₦223bn already disbursed, while further payments are ongoing.
The Presidency said the intervention would improve liquidity across the power value chain, ensuring more stable electricity generation and better service delivery to consumers.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the initiative as a critical move to restore confidence in the sector.
She noted that beyond settling debts, the programme aims to guarantee payments to gas suppliers and sustain operations of power plants, thereby enhancing system reliability.
Arowolo-Verheijen also linked the effort to broader reforms, including improved metering and service-based tariffs designed to reflect the quality of electricity supplied.
She stressed that priority would be given to power supply for businesses and industries to boost economic growth, job creation, and productivity.
Tinubu commended stakeholders for their support in addressing the sector’s challenges and confirmed that the next phase of the programme would commence within the current quarter.
