President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply across the country.
The approval, announced in a State House press release on April 5, 2026, is part of the Presidential Power Sector Financial Reforms Programme designed to resolve financial challenges that have plagued the sector for over a decade.
According to the statement issued by Bayo Onanuga, the debts accumulated between February 2015 and March 2025. After a comprehensive verification process, the Federal Government agreed on ₦3.3 trillion as a full and final settlement figure.
The government has already begun implementing the repayment plan. So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion.
Out of the funds required, the Federal Government has raised ₦501 billion, with ₦223 billion already disbursed to stakeholders in the power value chain. Additional payments are currently in progress.
Officials say the injection of funds is expected to stabilise electricity generation by ensuring that power plants receive the financial support needed to operate efficiently.
The government explained that settling the debts would directly improve electricity reliability for Nigerians. With power generation companies and gas suppliers being paid, disruptions in supply are expected to reduce significantly.
“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,” said Olu Arowolo-Verheijen.
She added that the initiative forms part of broader reforms, including improved metering systems and service-based tariffs that align electricity costs with the quality of supply received by consumers.
The administration also highlighted plans to prioritise electricity supply to businesses, industries, and small enterprises, noting that stable power is essential for job creation and economic growth.
Officials say improved electricity supply will encourage investment, boost productivity, and enhance livelihoods across the country.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen said.
President Tinubu commended stakeholders for their support in addressing the sector’s long-standing issues and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The government expressed optimism that the reforms will mark a turning point for Nigeria’s power sector, long criticised for inefficiency and unreliable supply.
