President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector.
The debts, which accumulated between February 2015 and March 2025, were verified after a detailed review, with officials agreeing on the amount as full and final settlement.
The implementation of the Presidential Power Sector Financial Reforms Programme has already started. About fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to support the plan, with ₦223 billion already paid and more disbursements ongoing.
According to officials, the financial support will improve electricity generation and make power supply more stable across the country. The government expects that better funding will attract more investment, create jobs, and improve service delivery in the electricity sector.
Speaking on the development, Special Adviser on Energy to the President, , described the programme as a major turning point. She said the initiative will restore confidence in the sector, ensure gas suppliers are paid, and help power plants operate effectively. She added that the reform is part of broader efforts, including improved metering and better tariffs, aimed at providing reliable electricity for homes, businesses, and industries.