President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a move designed to restore stability and improve electricity supply across the country.
The approval, issued under the Presidential Power Sector Financial Reforms Programme, follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025. 
Debt Settlement and Implementation
According to the State House, the ₦3.3 trillion figure represents a full and final settlement of verified obligations within the power value chain, ensuring what officials described as a fair and transparent resolution.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion.
The Federal Government has so far raised ₦501 billion to fund the initiative, with ₦223 billion already disbursed and additional payments in progress.
The intervention is expected to significantly improve electricity generation and distribution by addressing liquidity challenges that have long hindered the sector.
Officials say that as payments reach power generation companies and gas suppliers, operations will stabilise, leading to more reliable electricity for households and businesses.
Restoring Confidence in the Sector
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt repayment.
“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 stated.
She added that the intervention is part of broader reforms, including improved metering systems and service-based tariffs aimed at linking electricity costs to quality of supply.
The Federal Government also emphasised that stable electricity is central to economic growth, noting that improved power supply will support businesses, stimulate investment, and create jobs.
Efforts are also being made to prioritise electricity supply to industries, small businesses, and other productive sectors of the economy.
President Tinubu commended stakeholders for their role in resolving the long-standing challenges in the sector and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The initiative marks a major step in Nigeria’s ongoing power sector reforms, with the government aiming to build a more efficient, reliable, and investor-friendly electricity market.
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