President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria’s power sector, a move expected to significantly improve electricity supply and restore investor confidence.
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The approval, announced in a State House press release signed by presidential spokesperson , forms part of the Presidential Power Sector Financial Reforms Programme. The initiative seeks to clear legacy debts accumulated over a decade, from February 2015 to March 2025.
Following a comprehensive verification process, the Federal Government reached an agreement on ₦3.3 trillion as a full and final settlement of the outstanding obligations. Authorities say the deal is structured to ensure transparency and fairness across the power value chain.
Early implementation is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The government has raised ₦501 billion to kick-start the payments, of which ₦223 billion has already been disbursed, with additional payments ongoing.
Energy experts view the development as a critical step toward stabilising Nigeria’s fragile electricity sector. By settling debts owed to power generation companies and gas suppliers, the government aims to ensure consistent operations and improved energy output.
According to , the initiative goes beyond debt repayment. She noted that it is designed to restore confidence among investors and operators, enabling the sector to function more efficiently.
She further explained that the programme aligns with broader reforms, including improved metering systems and service-based tariffs that tie electricity costs to quality of supply. The government is also prioritising electricity distribution to industries, businesses, and small enterprises to stimulate economic growth and job creation.
For Nigerians, the expected outcome is more stable electricity supply, better service delivery, and increased economic opportunities as the sector becomes more reliable.
President Tinubu commended stakeholders for their role in addressing the long-standing challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The reform marks one of the most significant financial interventions in Nigeria’s power sector in recent years, signaling the administration’s commitment to tackling structural issues and delivering sustainable energy solutions.
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