President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle outstanding debts in the power sector under the Presidential Power Sector Financial Reforms Programme.
Bayo Onanuga, the President’s spokesman, said the approval follows a thorough review of legacy debts that have burdened the sector for over a decade. These 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,” Onanuga stated.
“Implementation has already begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund these payments, of which ₦223 billion has been disbursed, and further payments are underway.”
The government believes the settlement will strengthen the power value chain, improve generation stability, and enhance electricity reliability for Nigerians.
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, explained that the programme goes beyond settling debts. “This initiative is about restoring confidence in the power sector — ensuring gas suppliers are paid, power plants remain operational, and the system functions more reliably,” he said.
He added that the reforms also include better metering and service-based tariffs that link payment to electricity quality.
“The government is prioritising reliable power supply for businesses, industries, and small enterprises because electricity is key to creating jobs, supporting livelihoods, and growing the economy,” Arowolo-Verheijen noted.
President Tinubu commended all stakeholders who contributed to resolving the legacy issues and confirmed that the next phase of the programme, Series II, will commence this quarter.
