President Bola Tinubu has approved a major payment plan to clear long standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
The decision followed a final review of debts that have troubled the electricity industry for more than ten years. According to presidential spokesman Bayo Onanuga, the liabilities built up between February 2015 and March 2025.
After verification, the government agreed on ₦3.3 trillion as a full and final settlement to resolve the issue in a fair and transparent way. Implementation has already started, with 15 power plants signing agreements worth ₦2.3 trillion. So far, the Federal Government has raised ₦501 billion, and ₦223 billion has already been paid out, with more payments ongoing.
Officials say the move will improve electricity supply across the country. As funds reach power companies, generation is expected to become more stable, leading to better reliability for homes and businesses. The government also believes the reforms will attract new investments, create jobs, and improve service delivery.
Special Adviser on Energy Olu Arowolo-Verheijen explained that the programme is not just about paying debts but about rebuilding trust in the sector. He said it will ensure gas suppliers are paid, power plants continue operating, and the entire system becomes more dependable. He added that other reforms are ongoing, including improved metering and tariffs linked to the quality of electricity supply.
The government is also focusing on providing steady power to industries, businesses, and small enterprises, stressing that reliable electricity is key to economic growth and job creation. Tinubu praised stakeholders who helped address the long standing challenges and confirmed that the next phase of the programme will begin later this quarter.
