President Bola Ahmed Tinubu has approved a structured plan to clear long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
According to his spokesman, Bayo Onanuga, the decision follows a comprehensive review of legacy debts that have weighed down the sector for over a decade, spanning from February 2015 to March 2025.
After verification, a total of ₦3.3 trillion was agreed as a full and final settlement, aimed at resolving the issue in a transparent and sustainable way. Implementation is already underway, with 15 power plants signing agreements worth ₦2.3 trillion. So far, the Federal Government has raised ₦501 billion, out of which ₦223 billion has been paid, with more disbursements ongoing.
The move is expected to stabilise electricity generation by ensuring that players across the power value chain—especially power plants and gas suppliers—receive payments owed to them.
Speaking on the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, explained that the initiative goes beyond debt repayment.
She noted that the programme is designed to rebuild confidence in the sector, improve electricity reliability, and support ongoing reforms such as better metering and service-based tariffs that align billing with actual supply.
The government is also prioritising improved power supply for businesses, industries, and small enterprises, recognising electricity as a key driver of economic growth and job creation.
President Tinubu commended stakeholders involved in resolving the crisis and confirmed that the next phase of the programme is set to begin within the current quarter, signalling continued efforts to fix Nigeria’s power sector.
