President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear longstanding debts in Nigeria’s power sector, in a move aimed at restoring financial stability, improving electricity supply and advancing sustainable economic growth.
The intervention, under the Presidential Power Sector Financial Reforms Programme, follows a final verification of legacy liabilities accumulated across the electricity value chain between February 2015 and March 2025.
According to a statement issued by presidential spokesperson Bayo Onanuga, the ₦3.3 trillion represents a full and final settlement designed to ensure a transparent and credible resolution of debts owed to key industry players.
Implementation of the plan has commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to support the initial phase, with ₦223 billion already disbursed and further payments ongoing.
The Presidency said the initiative is expected to improve liquidity across the power value chain, enabling generation companies to sustain operations and deliver more reliable electricity supply to households and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is critical to restoring investor confidence and ensuring the long-term sustainability of the sector.
She noted that settling legacy debts would enable gas suppliers to be paid promptly and support more efficient plant operations, addressing key constraints to stable electricity generation in Nigeria.
The reforms also form part of broader efforts to improve sector efficiency, including expanded metering and the implementation of service-based tariffs linked to electricity supply quality.
Government officials said the intervention is expected to attract new investments, strengthen energy infrastructure and support job creation, particularly as improved power supply remains central to industrial productivity and economic resilience.
The Presidency added that priority will be given to ensuring stable electricity for industries, businesses and small enterprises, in line with efforts to drive inclusive growth and reduce the economic impact of unreliable power supply.
President Tinubu commended stakeholders for their cooperation in resolving longstanding sector challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
