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| File picture of Tinubu |
President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear longstanding debts in Nigeria’s power sector, in a move aimed at boosting electricity generation and improving supply nationwide.
The approval followed the conclusion of a comprehensive review of legacy liabilities accrued between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
In a statement issued on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed that the Federal Government adopted the ₦3.3 trillion figure as a full and final settlement after a verification exercise to address financial constraints that have plagued the sector for over a decade.
According to the statement, implementation of the settlement has commenced, with 15 power generation companies already signing agreements valued at ₦2.3 trillion.
The government has so far mobilised about ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while additional payments are in progress.
Officials noted that the intervention is expected to stabilise electricity generation by improving liquidity across the power value chain and strengthening the operations of generation companies.
Also speaking, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the initiative is designed not only to offset debts but also to rebuild confidence in the sector.
She said, “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.”
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