Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts, Boost Electricity Supply
Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts, Boost Electricity Supply
Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts, Boost Electricity Supply
President Bola Ahmed Tinubu has approved a comprehensive payment plan to settle long-standing debts in Nigeria’s power sector, marking a major step under the Presidential Power Sector Financial Reforms Programme.
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The approval follows a final review of legacy liabilities that have affected the sector for over a decade, with debts accumulated between February 2015 and March 2025.
After verification, a total of ₦3.3 trillion has been agreed upon as full and final settlement, aimed at ensuring a transparent and sustainable resolution of the financial burden.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, out of which ₦223 billion has been disbursed, while further payments are ongoing.
According to the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, the initiative is designed not only to clear debts but to restore confidence across the entire electricity value chain.
“This programme is not just about settling legacy debts. It is about ensuring gas suppliers are paid, power plants can continue operations, and the system functions more reliably,” she said.
She added that the reform is part of broader efforts, including improved metering and service-based tariffs that align electricity costs with quality of supply.
The government also plans to prioritise power supply to businesses, industries, and small enterprises, recognising reliable electricity as critical to economic growth, job creation, and improved livelihoods.
Analysts say the move is expected to stabilise power generation, attract fresh investment, and enhance service delivery to consumers across the country.
President Tinubu commended stakeholders for their support in resolving the sector’s challenges and confirmed that the next phase of the programme is set to commence within the current quarter.
Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts, Boost Electricity Supply
