President Bola Ahmed Tinubu has approved a payment package of ₦3.3 trillion to finally resolve the long-standing debts that have hindered stability in Nigeria’s power sector for years.
The announcement was made in a statement released on Sunday by the Special Adviser to the President, Mr Bayo Onanuga, who said the decision followed a comprehensive review of the debts owed under the Presidential Power Sector Financial Reforms Programme.
According to Mr Onanuga, the debts, which accumulated between February 2015 and March 2025, have continued to weigh heavily on electricity generation and supply across the country. He said the latest verification exercise confirmed ₦3.3 trillion as the agreed figure for a full and final settlement.
Implementation of the repayment plan has already commenced, with 15 power plants signing settlement agreements amounting to ₦2.3 trillion. The Federal Government has raised ₦501 billion to support the process, out of which ₦223 billion has been disbursed. Additional payments are currently being processed.
The Presidency said the settlement marks a major turning point for the power sector, with direct benefits expected across the entire value chain from gas suppliers to generating companies.
Impact on Nigerians
With the clearance of outstanding debts, officials expect more reliable electricity supply as power plants will now have the financial backing needed to operate efficiently. The government also anticipates increased investment and job creation as confidence in the sector improves.
“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, Special Adviser on Energy to the President.
She added that the settlement forms part of broader reforms, including improved metering and service-based tariffs designed to ensure consumers receive electricity quality that matches what they pay for.
“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 said.
