President Bola Tinubu has given the green light to a ₦3.3 trillion repayment framework designed to clear long-standing liabilities in Nigeria’s power sector and improve electricity supply across the country.
The initiative targets legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme, with the government adopting a comprehensive settlement approach after an extensive audit of outstanding obligations.
According to a statement released on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the implementation phase is already underway, with multiple stakeholders in the power value chain beginning to receive payments.
The statement read, “President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
“Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.”
Further insight into the reform was provided by the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, who emphasised that the initiative goes beyond debt clearance to restoring trust and functionality within the 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.
She noted that the effort forms part of a broader reform agenda that includes improved metering systems and service-based tariffs that align consumer payments with the quality of electricity supply.
The government also plans to prioritise power delivery to critical sectors such as businesses, industries, and small enterprises to stimulate economic growth and job creation.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen said.
President Tinubu commended stakeholders involved in resolving the sector’s long-standing financial issues and confirmed that the next phase of reforms, known as Series II, is scheduled to commence within the current quarter.
