Tinubu Approves ₦3.3tn Power Debt Payment Plan

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply and restore investor confidence.

The approval follows a final review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement to resolve the liabilities.

Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The government has so far raised ₦501 billion to kick-start the process, out of which ₦223 billion has been disbursed, with further payments ongoing.

Officials say the intervention is designed to stabilise the entire electricity value chain by ensuring that power generation companies and gas suppliers receive overdue payments. This is expected to support consistent operations and improve electricity reliability across the country.

According to the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, the initiative goes beyond debt settlement and is aimed at rebuilding trust within the sector.

She noted that the programme would ensure that power plants remain operational, while also strengthening confidence among investors and stakeholders. The reforms are part of a broader strategy that includes improved metering systems and service-based tariffs tied to the quality of electricity supply.

The Federal Government also reaffirmed its commitment to prioritising electricity supply to key sectors such as businesses, industries, and small enterprises, where reliable power is critical for economic growth and job creation.

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President Tinubu commended stakeholders who contributed to resolving the long-standing challenges in the sector and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.

The development marks one of the most significant financial interventions in Nigeria’s power sector in recent years, with expectations that it will pave the way for more stable electricity, increased investment, and improved service delivery for consumers nationwide.