By Cross Udo, Abuja
President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, a move aimed at restoring reliable electricity nationwide.
The decision comes after a final review of legacy debts that have plagued the sector for over a decade.
According to a statement by presidential spokesman Bayo Onanuga, the debts accumulated between February 2015 and March 2025.
“Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement said.
Implementation has already begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion.
The Federal Government has raised ₦501 billion for the disbursement, of which ₦223 billion has already been paid, with further payments ongoing.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve,” the statement added.
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, emphasised the broader significance:
“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.”
She added that reforms already underway, including better metering and service-based tariffs, will link what consumers pay to the quality of the electricity they receive.
“The government is prioritising power supply to businesses, industries, and small enterprises — reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,” Arowolo-Verheijen said.
The statement noted that the next phase (Series II) of the programme is set to begin this quarter, with President Tinubu commending all stakeholders for their support in resolving the sector’s legacy issues.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she concluded.
