President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector, a move the Federal Government says will help improve electricity supply and restore confidence in the industry.
The approval was disclosed in a State House press release issued on Sunday by presidential spokesman Bayo Onanuga. According to the statement, the settlement follows a final reconciliation of legacy debts accumulated between February 2015 and March 2025, with the Federal Government confirming ₦3.3 trillion as the full and final amount to be paid.
Implementation of the settlement plan has already begun, with 15 power generation companies signing agreements covering about ₦2.3 trillion. The government has so far raised ₦501 billion to fund the programme, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
Officials say the intervention is expected to strengthen electricity generation and improve reliability across the power value chain as funds reach key stakeholders in the sector.
Explaining the broader objective of the initiative, Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is designed to restore operational stability and confidence among investors and operators.
“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,” she said.
She added that the initiative forms part of a wider reform agenda aimed at improving efficiency and service delivery in the electricity sector.
“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.
President Tinubu also commended stakeholders involved in efforts to resolve the sector’s longstanding financial challenges and confirmed that the next phase of the programme, Series II, will begin within the current quarter.
The Federal Government said the initiative forms part of ongoing reforms aimed at stabilising the power sector, attracting investment, and improving electricity service delivery nationwide.
