Abuja: President Bola Tinubu has approved a N3.3 trillion payment plan to clear long-standing power sector debts.
The plan follows a final review of debts affecting Nigeria’s power sector over the past decade.
Presidential Spokesperson Mr Bayo Onanuga issued a statement on Sunday confirming these details.
The debts accumulated across the power value chain between February 2015 and March 2025.
Following verification, N3.3 trillion was agreed as a full and final settlement to ensure a fair, transparent and credible resolution of the liabilities.
The Presidency announced that implementation has begun; fifteen power generation companies have already signed settlement agreements totalling N2.3 trillion.
The Federal Government has already raised N501 billion to support the programme’s initial phase of payments.
Officials have already disbursed N223 billion of the amount raised to beneficiaries, with further payments underway.
The Presidency said this intervention would improve liquidity across the power value chain and support more stable electricity generation nationwide.
It added that with improved funding, power plants would be able to sustain operations, leading to enhanced reliability of electricity supply to homes and businesses.
Onanuga noted that the reforms would boost investor confidence, attract new investments, and create jobs across the sector.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the programme as critical to restoring confidence in the power sector.
“This programme is not just about settling legacy debts; it is about restoring confidence across the power sector and ensuring the system works more reliably.”
She explained that the initiative would ensure gas suppliers are paid and enable power plants to operate efficiently and sustainably.
Arowolo-Verheijen said the reforms include improved metering and service-based tariffs linked to electricity supply quality as part of broader efforts.
“It is part of wider reforms, including better metering and tariffs tied to service delivery, to improve efficiency and accountability.”
She added that the government prioritises power supply to industries, businesses, and small enterprises to drive economic growth and job creation.
She stated that the programme aims to deliver more reliable power to households and strengthen support for businesses nationwide.
“Our goal: reliable power for homes, business support, and a system that works for all Nigerians,” she said.
Tinubu commended stakeholders for supporting efforts to resolve longstanding sector issues and advance ongoing reforms.
He also confirmed that the next phase of the programme, Series II, will begin within the current quarter.
