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

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity reliability across the country.

The approval, announced in a State House press release, is part of the Presidential Power Sector Financial Reforms Programme, designed to address legacy debts accumulated between February 2015 and March 2025.

Following a comprehensive verification process, the Federal Government agreed on ₦3.3 trillion as a full and final settlement of the obligations, marking a significant step toward resolving challenges that have hindered the sector for over a decade.

Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to support the initiative, out of which ₦223 billion has been disbursed, with additional payments in progress.

According to the presidency, the intervention is expected to stabilise electricity generation by ensuring that power plants and gas suppliers receive overdue payments, thereby enhancing operational efficiency across the power value chain.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt settlement, describing it as a critical step toward rebuilding confidence in the sector.

She noted that the reforms also include improved metering systems and service-based tariffs that align electricity costs with the quality of supply received by consumers.

The government, she added, is prioritising electricity supply to businesses, industries, and small enterprises, stressing that reliable power is essential for job creation, economic growth, and improved livelihoods.

President Tinubu commended stakeholders for their role in addressing the sector’s longstanding issues and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.

The initiative is expected to pave the way for increased investment, enhanced service delivery, and a more sustainable electricity system for Nigerians.