Abuja, Nigeria – President Bola Tinubu has approved a payment plan to finally settle outstanding debts under the Presidential Power Sector Financial Reforms Programme, following a final review of legacy debts that have beset the power sector for more than a decade.
Okay News reports that the debts accumulated between February 2015 and March 2025, and following verification, N3.3 trillion (approximately $2.12 billion) has been agreed as a full and final settlement. Implementation has begun, with 15 power plants signing settlement agreements totalling N2.3 trillion.
The Federal Government has already raised N501 billion to fund these payments. Out of this amount, N223 billion has been disbursed, with further payments underway. The programme aims to restore confidence across the power sector by ensuring gas suppliers are paid, power plants can keep running, and the system becomes more reliable.
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, stated that with payments reaching the power value chain, generation will become more stable and electricity reliability will improve. She added that as the sector stabilises, more investment, jobs, and better service will follow.
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 next phase of the programme will begin this quarter.
This power sector debt resolution represents a major step toward restoring stability and attracting investment in Nigeria’s electricity industry.
