President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector, in a move aimed at improving electricity supply and stabilising the industry.
The approval followed a detailed review under the Presidential Power Sector Financial Reforms Programme, which examined liabilities accumulated between February 2015 and March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a final settlement figure, described by officials as a transparent resolution of legacy debts.
Implementation is already underway, with 15 generation companies signing settlement agreements worth ₦2.3 trillion. To begin the process, the government has raised ₦501 billion, of which ₦223 billion has been disbursed, while further payments are ongoing.
The intervention is expected to boost liquidity across the power value chain, ensuring timely payments to generation companies and gas suppliers. Authorities say this will help stabilise electricity generation and improve service delivery nationwide.
Speaking on the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt clearance and is designed to restore confidence in the sector. She added that it forms part of broader reforms, including improved metering systems and service-based tariffs tied to quality of supply.
According to her, the government is prioritising electricity access for businesses, industries, and small enterprises, recognising reliable power as key to economic growth, job creation, and improved living standards.
President Tinubu also commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of reforms, known as Series II, will commence within the current quarter.
The announcement was contained in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.