President Tinubu approves ₦3.3 trillion power sector debt settlement plan

By: Zagazola Makama

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in the power sector under the Presidential Power Sector Financial Reforms Programme.

The approval followed a final review of legacy debts accumulated between February 2015 and March 2025, which have significantly affected stability in the electricity value chain over the years.

According to the State House, a total of ₦3.3 trillion has been agreed as a full and final settlement after verification and reconciliation of outstanding obligations owed to power generation companies and other stakeholders.

Implementation of the settlement has already commenced, with 15 power plants signing agreements worth about ₦2.3 trillion.

The Federal Government has so far raised ₦501 billion to support the programme, out of which ₦223 billion has been disbursed, with further payments ongoing.

Presidential aide on Information and Strategy, Bayo Onanuga, said the initiative is expected to improve liquidity in the sector and enhance electricity reliability across the country.

He said the intervention would ensure gas suppliers and power plants receive payments required to sustain generation and improve supply stability.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is part of broader reforms aimed at linking electricity payments to service delivery, improving metering, and attracting new investments.

She added that the government was prioritising electricity supply to businesses, industries, and small enterprises as part of efforts to stimulate job creation and economic growth.

The presidency said the next phase of the reforms, tagged Series II, would commence within the quarter.