By Abdullahi Mukhtar Algasgaini
President Bola Tinubu has approved a N3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, a move aimed at restoring reliable electricity nationwide.
The debt, accumulated between February 2015 and March 2025, was verified and agreed upon as a full and final settlement under the Presidential Power Sector Financial Reforms Programme.
Implementation is already underway, with 15 power plants signing settlement agreements worth N2.3 trillion. The Federal Government has raised N501 billion for the payments, of which N223 billion has been disbursed.
According to a statehouse release, the government expects the settlement to stabilise generation, improve electricity reliability, attract investment, create jobs, and enhance service delivery.
“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,” said Olu Arowolo-Verheijen, Special Adviser on Energy to the President.
She noted that broader reforms, including better metering and service-based tariffs, are also progressing. The government is prioritising power supply to businesses and industries to boost job creation and economic growth.
President Tinubu commended stakeholders involved in resolving the legacy issues and confirmed that the next phase (Series II) will begin this quarter.
