Tinubu Approves ₦3.3 Trillion Plan to Clear Power Sector Debts, Boost Electricity Supply
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity generation and supply across the country.
The approval followed a comprehensive review of liabilities under the Presidential Power Sector Financial Reforms Programme, addressing legacy debts accumulated over a decade between February 2015 and March 2025.
According to a statement issued by the Presidency, the agreed ₦3.3 trillion represents a full and final settlement of the verified debts, marking a significant step toward restoring stability and confidence in the sector.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to kick-start the process, out of which ₦223 billion has been disbursed, while further payments are ongoing.
The government says the intervention is expected to strengthen the entire electricity value chain, ensuring more stable power generation and improved reliability of supply to homes and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, noted that the initiative goes beyond debt settlement, describing it as a critical step toward rebuilding trust within the sector.
She explained that the programme would ensure that gas suppliers are paid, enabling power plants to operate more efficiently, while also supporting broader reforms such as improved metering and service-based tariffs tied to electricity quality.
Arowolo-Verheijen added that the government is prioritising power supply to key sectors, including industries and small businesses, in a bid to drive economic growth, create jobs, and support livelihoods.
President Tinubu also commended stakeholders for their roles in resolving the long-standing issues and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The statement was signed by Bayo Onanuga on April 5, 2026.