President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing 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. After a detailed review, the government agreed on ₦3.3 trillion as a final settlement to ensure transparency and restore stability in the sector.
According to a statement by presidential spokesperson Bayo Onanuga, implementation has already begun.
So far, 15 power generation companies have signed agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion, with ₦223 billion already disbursed and additional payments ongoing.
The reform is expected to strengthen the entire electricity value chain by ensuring that gas suppliers and power plants receive payments, enabling more stable electricity generation.
The Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the plan goes beyond debt repayment, focusing on rebuilding confidence in the sector and improving overall performance.
She added that the reforms will also include better metering systems and service-based tariffs, where consumers pay based on the quality of electricity received.
The government further plans to prioritise power supply to businesses, industries, and small enterprises to support economic growth and job creation.
Tinubu commended stakeholders for their role in resolving the long-standing issues and confirmed that the next phase of the reform programme will begin later this quarter.
