President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, a move expected to boost electricity supply, restore investor confidence, and improve service delivery.
The plan covers legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. Implementation has begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion, while ₦223 billion of the ₦501 billion raised has already been disbursed.
Special Adviser on Energy, Olu Arowolo-Verheijen, emphasized that the initiative is about more than debt clearance: it aims to restore confidence, ensure gas suppliers are paid, keep power plants running, and deliver more reliable electricity. The reforms also include improved metering and service-based tariffs to link payment with electricity quality.
The presidency noted that enhanced liquidity across the power value chain will support homes, businesses, and industries, reduce outages, and strengthen the economy. The next phase, Series II, will commence within the current quarter.
