Tinubu Approves N3.3trn Debt Settlement Plan to Revive Power Sector
President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at resolving longstanding debts in Nigeria’s power sector, in a move expected to improve electricity generation and supply nationwide.
The approval follows a comprehensive review of legacy liabilities under the Presidential Power Sector Financial Reforms Programme, addressing debts accumulated over a ten-year period from February 2015 to March 2025.
According to the State House, the verified sum of ₦3.3 trillion has been agreed upon as a full and final settlement, marking a significant step toward restoring financial stability and operational efficiency across the electricity value chain.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The Federal Government has so far mobilised ₦501 billion to fund the initiative, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
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Officials say the intervention is expected to directly enhance power generation by easing financial constraints on power plants and ensuring that key stakeholders, including gas suppliers, are paid promptly.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond debt clearance, describing it as a critical step toward rebuilding trust and functionality within the sector.
She noted that the initiative forms part of broader reforms, including improvements in metering systems and the implementation of service-based tariffs designed to align electricity costs with the quality of supply received by consumers.
Arowolo-Verheijen also emphasised the government’s focus on prioritising electricity supply to businesses, industries, and small enterprises, stressing that reliable power is essential for job creation, economic growth, and improved livelihoods.
The presidency stated that as the sector stabilises, the reforms are expected to attract increased investment, create employment opportunities, and deliver better services to Nigerians.
President Tinubu commended stakeholders for their role in resolving the long-standing challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
By PRNigeria
