President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector, in a move aimed at improving electricity generation and supply nationwide.
The approval followed a final review of legacy liabilities accrued between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
In a statement issued on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the figure was adopted as a full and final settlement after due verification of the debts, which have weighed heavily on the sector for over a decade.
According to the statement, implementation of the plan has commenced, with 15 power generation companies already signing settlement agreements valued at ₦2.3 trillion.
The Federal Government has so far mobilised about ₦501 billion to fund the exercise, out of which ₦223 billion has been disbursed, while further payments are ongoing.
Officials said the intervention is expected to improve liquidity across the electricity value chain, stabilise power generation, and support the operations of generation companies.
The Special Adviser to the President on Energy, Olu Arowolo-Verheijen, noted that the initiative extends beyond debt clearance, describing it as a critical step towards restoring confidence in the power sector.
“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.