Tinubu Okays ₦3.3 Trillion Debt Settlement Plan to Stabilise Power Sector

President Bola Ahmed Tinubu has approved a comprehensive ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and restoring reliable electricity supply across the country.

The approval follows a final review of legacy debts accumulated under the Presidential Power Sector Financial Reforms Programme, which have weighed down the industry for over a decade.

The debts, incurred between February 2015 and March 2025, were verified and agreed upon as a full and final settlement to ensure transparency and fairness.

According to a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, implementation of the repayment plan is already underway.

So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, with ₦223 billion already disbursed and additional payments in progress.

Explaining the impact of the initiative, Olu Arowolo-Verheijen said the programme is designed to restore confidence across the electricity value chain, ensuring that gas suppliers are paid and power plants can operate sustainably.

She added that the intervention forms part of broader reforms, including improved metering systems and service-based tariffs that align electricity costs with the quality of supply received by consumers.

The government is also prioritising stable electricity for businesses, industries, and small enterprises, recognising reliable power as a key driver of job creation and economic growth.

President Tinubu commended stakeholders for their role in resolving the sector’s longstanding financial challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.

The administration says the ultimate goal is to deliver consistent electricity to households, strengthen support for businesses, and build a more efficient and reliable power system for all Nigerians.