President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to clear long-standing debts in Nigeria’s power sector, marking a major step toward restoring stable electricity supply and investor confidence.
The debt, accumulated between February 2015 and March 2025, has weighed on the sector for over a decade. Following verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement under the Presidential Power Sector Financial Reforms Programme.
Implementation is already underway. Fifteen power generation companies have signed settlement agreements worth ₦2.3 trillion, while the government has raised ₦501 billion to fund the process. So far, ₦223 billion has been disbursed, with further payments ongoing.
The intervention is expected to stabilise electricity generation by ensuring that gas suppliers and power plants receive payments owed to them. Officials say this will help keep power plants operational and improve overall system reliability.
According to the Presidency, the programme goes beyond debt settlement and forms part of broader reforms in the electricity sector. These include improved metering, service-based tariffs, and targeted power supply to industries and small businesses.
The government believes that stabilising the sector will unlock new investments, support job creation, and drive economic growth.
President Tinubu also confirmed that the next phase of the programme (Series II) will commence this quarter, as efforts continue to build a more reliable and efficient power system for Nigerians.
