President Bola Tinubu has approved a payment plan to settle longstanding debts under the Presidential Power Sector Financial Reforms Programme, marking a major step toward stabilizing Nigeria’s electricity sector.
The repayment plan follows a final review of legacy debts that have weighed down the power sector for over a decade.
The debts, accumulated between February 2015 and March 2025, were verified, with ₦3.3 trillion agreed upon as a full and final settlement to ensure a fair and transparent resolution.
As part of the arrangement, 15 power generation companies have signed settlement agreements totaling ₦2.3 trillion.
The Federal Government has already raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed, while further payments are ongoing.
The development is expected to improve electricity generation stability, support power plants, and enhance overall reliability of supply across the country.With the sector gradually stabilizing, the government anticipates increased investment, job creation, and improved service delivery in the power industry.
According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the programme goes beyond settling debts.
“This initiative is not just about clearing legacy debts; it is about restoring confidence across the power sector,” he said.
The Federal Government is also prioritizing power supply to businesses, industries, and small enterprises, recognizing that reliable electricity is essential for economic growth, job creation, and improved livelihoods.
President Tinubu commended stakeholders who contributed to resolving the longstanding issues in the sector and confirmed that the next phase of the programme will commence this quarter.