President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and improving electricity supply.
The approval was disclosed in a State House press release issued by presidential spokesman Bayo Onanuga on Sunday. The plan follows a final review of legacy debts accumulated between February 2015 and March 2025, with the Federal Government confirming ₦3.3 trillion as the agreed full and final settlement.
According to the statement, implementation of the plan is already underway, with 15 power plants signing settlement agreements worth ₦2.3 trillion. The government has raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while further payments are ongoing.
The statement noted that the intervention is expected to strengthen electricity generation and improve reliability across the sector, as funds begin to reach key players within the power value chain.
Explaining the broader impact of the programme, Olu Arowolo-Verheijen, Special Adviser on Energy to the President, said:
“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,
“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 added.
President Tinubu also commended stakeholders involved in addressing the sector’s long-standing challenges and confirmed that the next phase of the programme, Series II, will commence within the current quarter.
The Federal Government said the initiative forms part of ongoing reforms to stabilise the power sector, attract investment, and enhance service delivery nationwide.
Ademide Adebayo
