Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts

Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts
15 power plants signed settlement agreements worth ₦2.3 trillion
Commended stakeholders who contributed to resolving the long-standing issues in the sector

President Bola Tinubu has approved a payment plan to settle long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.

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Eko Hot Blog reports that the move follows a final review of legacy debts that have burdened the sector for over a decade, with obligations accumulated between February 2015 and March 2025.

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After verification, a total of ₦3.3 trillion has been agreed as a full and final settlement to ensure a transparent and fair resolution.

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

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

According to the government, the plan is expected to improve stability across the power value chain, ensuring that gas suppliers and power plants are paid, which will in turn enhance electricity generation and reliability for consumers.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt repayment, describing it as a step toward restoring confidence 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.

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She added that the reforms form part of broader efforts, including improved metering and service-based tariffs, where electricity charges are tied to the quality of service delivered.

The government also emphasised its focus on prioritising power supply to businesses, industries, and small enterprises, noting that reliable electricity is essential for job creation, economic growth, and improved livelihoods.

President Tinubu commended stakeholders who contributed to resolving the long-standing issues in the sector and confirmed that the next phase of the programme will commence within the quarter.