President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear long-standing debts in Nigeria’s power sector, in a move aimed at improving electricity reliability.
The settlement covers liabilities accumulated between 2015 and 2025 under the Presidential Power Sector Financial Reforms Programme. According to presidential spokesman Bayo Onanuga, the amount represents a “full and final” resolution after a comprehensive review process.
Implementation has already commenced, with 15 power generation companies signing agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion so far, disbursing ₦223 billion, with further payments ongoing.
Officials say the intervention will stabilise the power value chain by ensuring gas suppliers and generation companies receive payments, ultimately leading to more consistent electricity supply.
Special Adviser on Energy, Olu Arowolo-Verheijen, noted that the reform goes beyond debt clearance, targeting renewed investor confidence, improved metering, and service-based tariffs tied to power quality.
The government also plans to prioritise electricity supply to businesses and industries to support economic growth, as the next phase of reforms is set to begin later this quarter.
