President Bola Ahmed Tinubu has approved a ₦3.3 trillion repayment plan aimed at settling longstanding debts in Nigeria’s power sector and improving electricity supply nationwide.
The initiative targets legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
According to a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the approved amount represents a final settlement after a detailed verification process to ensure transparency and fairness.
The statement read, “President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
“Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.”
Further insight was provided by the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, who noted that the intervention is designed to restore confidence across the electricity value chain.
“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 said.
She added that the reforms form part of broader efforts to improve the sector, including enhanced metering systems and service-based tariffs that align payments with the quality of electricity supplied.
The government also plans to prioritise power supply to businesses, industries, and small enterprises to stimulate economic growth and job creation.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen said.
President Tinubu commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the reform programme, Series II, will begin later this quarter.
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