President Bola Tinubu has approved a N3.3tr payment plan to wipe out longstanding debts crippling the nation’s power sector, kicking off his government’s drive for stable electricity that could unlock investment and jobs.
Special Adviser on Information and Strategy to the President Bayo Onanuga in a statement said the settlement, under the Presidential Power Sector Financial Reforms Programme, will resolve verified legacy debts accrued from February 2015 to March 2025.
Onanuga said implementation is underway: Fifteen power plants have inked deals totaling ₦2.3 trillion, with the federal government raising ₦501 billion so far including ₦223 billion already disbursed.
The move targets the full power value chain, from gas suppliers to generators, aiming to end chronic shortages.
READ ALSO: Wike allies resume full leadership of PDP at Abuja national secretariat
“This programme is not just about settling legacy debts,” the statement quoted Olu Verheijen, the President’s special adviser on energy.
“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.”
Broader reforms include service-based tariffs tied to supply quality and prioritized power for businesses and industries.
“Reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,” Verheijen added.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
President Tinubu praised stakeholders and said a second phase of payments starts this quarter.
The plan promises steadier generation, drawing investors to a sector long hobbled by arrears.
