In a major move to address challenges in Nigeria’s electricity sector, President Bola Tinubu has approved a ₦3.3 trillion plan to settle accumulated power sector debts.
The plan covers legacy obligations accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. Following a detailed review, the federal government settled on ₦3.3 trillion as a full and final resolution of the outstanding debts.
According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, implementation of the repayment plan has already commenced.
He disclosed that 15 power plants have signed settlement agreements worth ₦2.3 trillion, while the federal government has so far raised ₦501 billion to fund the programme. Of this amount, ₦223 billion has already been disbursed, with additional payments ongoing.
The statement said the initiative is expected to strengthen the entire power value chain, ensuring that gas suppliers and generating companies receive payments needed to sustain operations and improve electricity delivery.
Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the plan goes beyond debt settlement, describing it as a reform designed to restore confidence in the sector.
She said the programme will ensure power plants remain operational, gas supply is sustained, and the electricity system functions more efficiently.
According to her, the reforms will also be complemented by improved metering and service-based tariffs, linking consumer payments to the quality of electricity supplied.
She added that priority attention will be given to businesses, industries, and small enterprises as part of efforts to drive job creation and economic growth.
Tinubu praised stakeholders and confirmed that Series II of power sector reforms will start this quarter.
