President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to clear long-standing debts in Nigeria’s power sector, aiming to ensure more reliable electricity for homes and businesses.
The plan follows a final review of legacy debts accumulated between February 2015 and March 2025. After verification, ₦3.3 trillion has been confirmed as a full and final settlement to resolve the sector’s decade-long financial challenges.
Implementation is already in progress. Fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the payments, disbursing ₦223 billion so far, with additional payments ongoing.
Experts say that as funds flow to the power value chain, electricity generation will stabilise, power plants will operate more efficiently, and supply reliability will improve.
Olu Arowolo-Verheijen, Special Adviser on Energy to the President, explained that the programme is designed not only to settle debts but also to restore confidence in the power sector, ensuring timely payments to gas suppliers and power producers.
She added that ongoing reforms, such as better metering and service-based tariffs, will link electricity costs to supply quality, while prioritising power for industries, businesses, and small enterprises to boost jobs and economic growth.
President Tinubu commended stakeholders who supported the debt resolution efforts and confirmed that the next phase of the programme will begin later this quarter.
READ ALSO:
- Nigeria Loses 3,100 GWh of Power Potential to Gas Flaring in May
- Kogi: Gunmen Abduct School Principal, Four Students, NECO Official During Exam
- Nigeria, Ghana, Côte d’Ivoire, Cameroon Unite to Boost Cocoa Processing
- Nigeria, Benin Customs Deepen Border Security Partnership with Geospatial Technology
- Iran Says Strait of Hormuz Will Stay Closed Until US Ends Military Actions
