Tinubu Okays ₦3.3tn Power Sector Debt Repayment Plan

President Bola Tinubu has approved the payment of ₦3.3 trillion to clear longstanding debts owed to stakeholders in Nigeria’s po...

President Bola Tinubu has approved the payment of ₦3.3 trillion to clear longstanding debts owed to stakeholders in Nigeria’s power sector, accumulated between February 2015 and March 2025.

In a statement issued by presidential spokesperson Bayo Onanuga, the approval follows a comprehensive review of legacy liabilities that have burdened the sector for over a decade.

According to the statement, implementation of the repayment 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 support the initiative, out of which ₦223 billion has been disbursed, while additional payments are in progress.

The debt settlement is being executed under the Power Sector Financial Reforms Programme, aimed at ensuring a transparent resolution of obligations and strengthening electricity generation and distribution across the country.

The government noted that the intervention is expected to deliver wide-ranging benefits, including improved power stability, enhanced reliability, and increased investor confidence in the sector.

“With payments reaching key players in the value chain, electricity generation will become more stable, service delivery will improve, and the sector will attract more investments and create jobs,” the statement said.

Providing further insight, Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the initiative goes beyond debt clearance.

“This programme is about restoring confidence in the power sector—ensuring gas suppliers are paid, power plants remain operational, and the system functions more reliably,” she said.

She added that the move aligns with broader reforms, including improved metering systems and service-based tariffs designed to reflect the quality of electricity supplied.

Arowolo-Verheijen also noted that the government is prioritising power supply to businesses and industries to boost economic growth, job creation, and productivity.

She emphasised that the ultimate goal is to deliver more reliable electricity to households, strengthen support for businesses, and build a more efficient power system for Nigerians.

The statement further revealed that President Tinubu has commended stakeholders for their role in addressing the sector’s challenges and confirmed that the next phase of the programme (Series II) will commence in the second quarter of the year.