President Bola Tinubu has approved a ₦3.3 trillion debt repayment plan aimed at resolving over a decade of financial gridlock in Nigeria’s power sector, in a move designed to restore reliable electricity across the country.
The approval, announced on Sunday, covers legacy debts accumulated between February 2015 and March 2025. Following a verification process, the ₦3.3 trillion figure was agreed as a full and final settlement.
Fifteen power plants have already signed settlement agreements totalling ₦2.3 trillion, according to a statement from the Presidency. The Federal Government has raised ₦501 billion to fund the payments, of which ₦223 billion has been disbursed. Further disbursements are ongoing.
Speaking on the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the programme goes beyond clearing old debts. She explained that it is intended to restore confidence across the power value chain by ensuring gas suppliers are paid and power plants can continue operating.
She added that the reform is part of a broader effort that includes improved metering and service-based tariffs that reflect the quality of electricity delivered to consumers. The government, she said, is also prioritising power supply to businesses and small enterprises, noting that reliable electricity is critical to job creation and economic growth.
President Tinubu commended stakeholders who contributed to resolving the legacy issues and confirmed that the next phase of the programme, Series II, will begin this quarter.
With payments now reaching the power sector’s value chain, authorities expect more stable generation, improved reliability, and ultimately greater investment and employment in the sector.
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