By Amofokhai Williams
President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a move expected to stabilise electricity supply and restore investor confidence.
The approval followed a comprehensive review of legacy liabilities under the Presidential Power Sector Financial Reforms Programme, with debts accumulated between February 2015 and March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a final settlement figure.
Implementation of the plan has commenced, with 15 power generation companies already signing settlement agreements valued at ₦2.3 trillion.
The government has raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
Officials say the intervention is designed to strengthen the entire power value chain, ensuring that generation companies and gas suppliers receive payments, thereby improving operational efficiency and electricity reliability.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt clearance, describing it as a critical step towards rebuilding trust 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 added that the reforms align with ongoing efforts to improve metering, introduce service-based tariffs and prioritise electricity supply to businesses and industries to drive economic growth.
Tinubu also commended stakeholders for their support in resolving the sector’s long-standing challenges, noting that the next phase of the reform programme is scheduled to commence within the current quarter.
The initiative is expected to pave the way for increased investment, job creation and improved service delivery in Nigeria’s power sector.
