The President and Commander-in-Chief of the Armed Forces, Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector, in a decisive move to restore stable and reliable electricity across the country.
The approval, announced in a State House press release on Sunday, 5th April, 2026 follows a comprehensive review of legacy debts accumulated under the Presidential Power Sector Financial Reforms Programme between February 2015 and March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement, marking a significant step toward resolving financial bottlenecks that have plagued the sector for over a decade.
Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. To kick-start the process, the Federal Government has raised ₦501 billion, out of which ₦223 billion has been disbursed, while additional payments are in progress.
According to the Presidency, the intervention is expected to directly impact electricity generation and supply across the country. By settling outstanding obligations within the power value chain, generation companies will have improved capacity to operate efficiently, leading to more stable power supply for homes and businesses.
Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the initiative as a critical milestone in rebuilding confidence within the sector.
“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,” she said.
She further explained that the debt settlement forms part of broader reforms being implemented by the Tinubu administration, including improved metering systems and service-based tariffs that align electricity costs with quality of supply.
The government is also placing strategic emphasis on prioritising electricity supply to key sectors such as industries, businesses, and small enterprises, recognising the role of stable power in driving economic growth, job creation, and improved livelihoods.
President Tinubu commended stakeholders across the power sector for their cooperation in resolving the longstanding issues and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The initiative signals a renewed push by the Federal Government to stabilise Nigeria’s electricity sector, attract investment, and ultimately deliver more reliable power to millions of Nigerians.
