President Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, a move expected to significantly improve electricity supply and restore confidence across the industry.
The development was disclosed in a statement shared on Facebook by Bayo Onanuga, who explained that the initiative falls under the Presidential Power Sector Financial Reforms Programme. The programme is designed to address legacy liabilities that have plagued the sector for over a decade.
According to the statement, the debts accumulated between February 2015 and March 2025 and have now undergone a final verification process. Following this review, the Federal Government and stakeholders agreed on ₦3.3 trillion as a full and final settlement figure, a step described as both fair and transparent.
Implementation of the repayment plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. To fund the process, the Federal Government has raised ₦501 billion, out of which ₦223 billion has already been disbursed. Additional payments are expected to continue in phases as the programme progresses.
The intervention is expected to deliver tangible benefits to Nigerians, particularly in stabilising electricity generation. Industry experts note that consistent funding across the power value chain will enable power plants to operate more efficiently, ultimately improving the reliability of electricity supply nationwide.
Speaking on the significance of the initiative, Olu Arowolo-Verheijen said the programme is not only about settling debts but also about rebuilding trust within the power sector. She noted that ensuring timely payments to gas suppliers and power generation companies would help sustain operations and enhance overall system performance.
She added that the reform effort is part of a broader strategy by the Tinubu administration to overhaul the electricity sector. This includes the rollout of improved metering systems and the introduction of service-based tariffs, which aim to align electricity costs with the quality of supply received by consumers.
Furthermore, the government is prioritising stable power supply to businesses, industries, and small-scale enterprises, recognising electricity as a critical driver of economic growth, job creation, and improved livelihoods.
Analysts believe that the successful execution of the programme could attract new investments into the sector, strengthen infrastructure, and improve service delivery over time. The expected ripple effects include increased productivity for businesses and enhanced living conditions for households.
President Tinubu also commended stakeholders who contributed to resolving the long-standing financial issues in the sector, describing the progress as a major milestone in ongoing reform efforts. He confirmed that the next phase of the programme, referred to as Series II, is scheduled to begin within the current quarter.
The announcement signals a renewed push by the Federal Government to address structural challenges in Nigeria’s power industry, with the ultimate goal of delivering more reliable electricity to homes and businesses across the country.