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 supply and restore investor confidence.
According to a State House press release issued on Sunday, April 5, 2026, by Bayo Onanuga, the initiative falls under the Presidential Power Sector Financial Reforms Programme and represents a decisive step toward addressing legacy liabilities that have plagued the sector for over a decade.
The debts, which accumulated between February 2015 and March 2025, were subjected to a comprehensive review and verification process. Following this exercise, the Federal Government agreed on ₦3.3 trillion as a full and final settlement figure, aimed at ensuring a transparent and equitable resolution.
Implementation of the repayment plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The government has so far raised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while additional payments are currently underway.
The development is expected to have a direct impact on electricity supply nationwide. By settling debts across the power value chain, generation companies will be better positioned to operate efficiently, leading to improved stability and reliability in power supply.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the programme as a critical intervention designed not only to clear outstanding obligations but also to rebuild trust within the sector.
She explained that the initiative would ensure that gas suppliers are paid, enabling power plants to function optimally, while also supporting broader reforms such as improved metering and service-based tariffs tied to electricity quality.
Arowolo-Verheijen further noted that the government is prioritising electricity supply to key sectors, including industries and small businesses, as part of efforts to stimulate economic growth, create jobs, and support livelihoods.
President Tinubu commended stakeholders for their roles in resolving the long-standing issues and confirmed that the next phase of the programme, known as Series II, is scheduled to commence within the current quarter.
The administration expressed optimism that the reforms will ultimately deliver more reliable electricity for households, strengthen business operations, and create a more efficient power sector for Nigerians.
