President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a move the Federal Government says will restore stability and improve electricity supply nationwide.
The approval, announced in a State House press release on April 5, 2026, marks a major step under the Presidential Power Sector Financial Reforms Programme, designed to resolve legacy financial obligations that have weighed down the industry for over a decade.
According to the statement signed by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the debts—accumulated between February 2015 and March 2025—have now been verified, with ₦3.3 trillion agreed as a “full and final settlement.”
Implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, with further payments in progress.
Explaining the impact of the programme, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the initiative is critical to restoring confidence across the electricity value chain.
“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 added that the reforms go beyond debt settlement, forming part of broader efforts to improve service delivery and attract investment.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she stated.
The presidency said the intervention is expected to stabilise power generation, improve electricity reliability, and unlock new investments across the sector.
President Tinubu also commended stakeholders who contributed to resolving the long-standing issues and confirmed that the next phase of the programme, tagged Series II, will commence within the current quarter.
