Written By Ahmed Rufa’i Dutse
President Bola Ahmed Tinubu has approved a comprehensive payment plan to clear long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
The development was disclosed in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, who said the move followed a final review of legacy liabilities that have plagued the sector for over a decade.
According to the statement, the debts — accumulated between February 2015 and March 2025 have now been reconciled, with ₦3.3 trillion agreed upon as a full and final settlement figure aimed at ensuring transparency and fairness.
Implementation of the repayment plan is already underway. About 15 power generation companies have signed settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to fund the exercise, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
The presidency noted that the intervention is expected to bring immediate relief across the power value chain, boosting electricity generation and improving supply reliability nationwide.
Explaining the broader impact, Onanuga said the initiative would stabilise operations within the sector, attract fresh investments, create jobs, and enhance service delivery to consumers.
Also speaking, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the programme as a strategic step beyond debt settlement.
“This programme is not just about clearing liabilities; it is about restoring confidence in the power sector ensuring gas suppliers are paid, generation companies remain operational, and the system functions more efficiently,” she said.
She added that the reforms are part of a wider strategy that includes improved metering and service-based tariffs designed to align electricity costs with quality of supply.
The government, she further noted, is prioritising electricity supply to businesses, industries, and small enterprises, stressing that reliable power remains critical for job creation, economic growth, and improved livelihoods.
President Tinubu commended stakeholders for their roles in addressing the sector’s longstanding challenges and confirmed that the next phase of the programme, Series II, will commence later this quarter.
