President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear power sector debts and boost electricity supply across Nigeria.
FG Moves To Clear Power Sector Debts
However, the Federal Government reached the decision after reviewing legacy debts built up between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
The government described the ₦3.3 trillion as a full and final settlement to restore transparency and stability across the electricity value chain.
Furthermore, the Presidency confirmed that implementation has started. About 15 power generation companies have already signed settlement agreements worth ₦2.3 trillion.
In response, the government raised ₦501 billion so far to fund the plan. It has already paid ₦223 billion, while it continues further disbursements.
Stakeholders Expect Improved Power Supply
Meanwhile, officials expect the intervention to improve electricity generation and supply nationwide. They say clearing debts will help power plants run more efficiently and consistently.
Consequently, the Special Adviser on Energy, Olu Arowolo-Verheijen, said the plan goes beyond debt repayment. She explained that the government aims to restore investor confidence, pay gas suppliers, and stabilise operations.
Furthermore, she noted that reforms include better metering and service-based tariffs. These measures will align electricity costs with the quality of service consumers receive.
In response, President Bola Tinubu stressed the need to prioritise power supply to businesses and industries. He said reliable electricity remains critical for job creation and economic growth.
Next Phase To Begin Soon
Meanwhile, the President commended stakeholders for supporting efforts to fix long-standing issues in the sector. He also confirmed that the next phase of the reform programme, known as Series II, will begin within the current quarter.
