Tinubu Approves N3.3tn Plan to Clear Power Sector Debts, Boost Electricity Supply

Tinubu Approves N3.3tn Plan to Clear Power Sector Debts, Boost Electricity Supply

JOEL OLADELE, Abuja

President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply and restore investor confidence.

The approval, announced in a statement on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, followed a final review of legacy debts accumulated over a decade under the Presidential Power Sector Financial Reforms Programme.

According to the statement, the debts; incurred between February 2015 and March 2025 were thoroughly verified, with N3.3 trillion agreed upon as a full and final settlement figure.

The presidency disclosed that implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at N2.3 trillion.

It added that the Federal Government has so far raised ₦501 billion to fund the payments, out of which N223 billion has been disbursed, while additional payments are in progress.

The statement explained that the intervention is expected to stabilise electricity generation by ensuring that players across the power value chain, particularly generation companies, receive the funds owed to them.

“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,” said Olu Arowolo-Verheijen.

She added that the initiative forms part of broader reforms in the sector, including improved metering and service-based tariffs designed to align electricity billing with quality of supply.

“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,” she said.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”

President Tinubu also commended stakeholders for their roles in addressing the sector’s long-standing challenges and confirmed that the next phase of the programme, tagged Series II, will commence within the current quarter.