Tinubu approves ₦3.3tn power sector debt Plan to improve electricity supply
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to clear long-standing debts in Nigeria’s power sector, in a move aimed at restoring stability and boosting electricity supply nationwide.
The approval, announced in a State House statement, forms part of the Presidential Power Sector Financial Reforms Programme, designed to resolve legacy financial obligations that have burdened the sector for over a decade.
According to the statement signed by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the debts accumulated between February 2015 and March 2025, with stakeholders agreeing on ₦3.3 trillion as a “full and final settlement” after a comprehensive verification process.
Implementation of the repayment plan is already underway, with 15 power generation companies (GenCos) signing settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while further payments are ongoing.
Officials say the intervention is expected to significantly improve electricity generation and supply by easing financial constraints across the power value chain. With outstanding debts being cleared, generation companies are expected to operate more efficiently, ensuring more stable and reliable power supply.
Special Adviser on Energy to the President, Olu Arowolo-Verheijen, described the initiative as a major step toward rebuilding trust in the sector.
“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 said.
She added that the programme is part of broader reforms, including improved metering and the implementation of service-based tariffs that tie electricity costs to the quality of supply.
The government also plans to prioritise electricity delivery to critical sectors such as industries, businesses, and small enterprises, with the goal of stimulating economic growth and creating jobs.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen added.
President Tinubu commended stakeholders for their cooperation in addressing the long-standing issues and confirmed that the next phase of the programme, known as Series II, will commence later in the quarter.
Nigeria’s power sector has long been plagued by liquidity challenges, infrastructure gaps, and inconsistent electricity supply, with unpaid debts widely seen as a major obstacle. The latest intervention is regarded as one of the most significant financial restructuring efforts in the sector in recent years.
