President Bola Ahmed Tinubu has approved a massive ₦3.3 trillion payment plan aimed at clearing long-standing debts and restoring stability to Nigeria’s Power Sector.
Clearing Decade-Long Power Sector Debts
The payment plan is part of the Presidential Power Sector Financial Reforms Programme, designed to resolve legacy debts that have accumulated between 2015 and 2025. After a comprehensive verification process, the government confirmed ₦3.3 trillion as the final settlement figure to address obligations owed across the power value chain.
Implementation is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. So far, the Federal Government has raised ₦501 billion, with ₦223 billion already disbursed and additional payments ongoing.
According to the Special Adviser on Energy, Olu Arowolo-Verheijen, the initiative goes beyond debt repayment. It is designed to rebuild trust among stakeholders, ensure gas suppliers are paid, and enable power plants to operate more efficiently.
What It Means for Nigerians
The government says the move will directly improve electricity reliability across the country. By settling debts owed to power producers and suppliers, generation capacity is expected to stabilize, reducing outages and disruptions to Nigeria’s Power Sector.
The reforms also tie into broader efforts such as improved metering and service-based tariffs, ensuring consumers pay in line with the quality of electricity received. In addition, priority will be given to powering businesses, industries, and small enterprises to support economic growth and job creation.
President Tinubu has also announced that the next phase of the programme will begin this quarter, signaling continued commitment to overhauling the sector. If successfully executed, the initiative could mark a turning point in Nigeria’s power supply, delivering more reliable electricity for homes and businesses nationwide.
