President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long standing debts in Nigeria’s power sector, in a move aimed at improving electricity supply across the country. The debts, which accumulated between 2015 and 2025 under the Presidential Power Sector Financial Reforms Programme, have been a major challenge affecting stability in the industry.
According to a statement by presidential spokesman Bayo Onanuga, the government reached the figure after a thorough verification process, describing it as a final and transparent settlement. Implementation has already commenced, with agreements signed with 15 power generation companies covering about ₦2.3 trillion.
Officials say the repayment plan is expected to stabilise the entire power value chain, ensuring that gas suppliers are paid and power plants can operate more efficiently. The Special Adviser on Energy, Olu Arowolo-Verheijen, noted that the initiative would help restore confidence in the sector and improve electricity reliability for Nigerians.
The government added that the reforms will also support broader measures such as improved metering and service based tariffs, while prioritising power supply to businesses and industries to drive economic growth. Tinubu commended stakeholders for their role in resolving the crisis and confirmed that the next phase of the reform programme will begin this quarter.