Tinubu clears ₦3.3tn power sector debts to boost electricity supply

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle longstanding debts in Nigeria’s power sector and improve electricity reliability across the country.

The plan targets legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. Following a comprehensive review, the government agreed on ₦3.3 trillion as a full and final settlement, ensuring transparency and fairness.

According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, implementation of the repayment plan has already begun. Fifteen power plants have signed settlement agreements totaling ₦2.3 trillion, with the federal government having raised ₦501 billion to fund payments, of which ₦223 billion has already been disbursed, while further payments are ongoing.

The statement noted that the initiative will stabilise the power value chain and improve electricity reliability, as payments reach gas suppliers and power plants.

Commenting on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the settlement goes beyond clearing debts. It is designed to restore confidence across the power sector, ensure plants remain operational, and improve the overall functioning of the electricity system.

“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.

Arowolo-Verheijen added that the reforms will be accompanied by better metering and service-based tariffs, linking consumer payments to the quality of electricity received. Priority will also be given to businesses, industries, and small enterprises to support job creation and economic growth.

She emphasised, “The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”

President Tinubu commended all stakeholders involved in resolving the legacy issues and confirmed that the next phase of the reforms, Series II, will commence this quarter.