Tinubu Approves N3.3trn Power Debt Payment Plan

President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector, in a move aimed at restoring stable and reliable electricity across the country.

The approval followed a final review of legacy debts under the Presidential Power Sector Financial Reforms Programme, which accumulated between February 2015 and March 2025.

After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement to address the financial burden that has plagued the sector for over a decade.

Implementation is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. So far, the government has raised ₦501 billion, out of which ₦223 billion has been disbursed, while further payments are ongoing.

The development is expected to boost electricity generation and improve supply nationwide, as funds begin to reach critical players in the power value chain.

Explaining the impact of the initiative, Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said:

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector, ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,”

“It is part of a broader set of reforms already underway, including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.

“The government is also prioritising power supply to businesses, industries, and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.

The Presidency said the initiative will also drive investment, create jobs, and improve service delivery as the sector stabilises.

President Tinubu commended stakeholders for their roles in resolving the long-standing issues and confirmed that the next phase of the programme, Series II, will commence this quarter.