President Bola Tinubu has approved a N3.3 trillion payment framework aimed at settling long-standing debts in Nigeria’s power sector.
The approval, announced in a statement by Bayo Onanuga, presidential spokesperson, follows a final review of liabilities under the Presidential Power Sector Financial Reforms Programme.
According to the presidency, the debts accumulated over a 10-year period, spanning February 2015 to March 2025, significantly constrained operations across the electricity value chain.
After a verification process, the federal government and stakeholders agreed on N3.3 trillion as a full and final settlement figure, in what officials described as a transparent resolution of the liabilities.
The statement said implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at N2.3 trillion.
It added that the federal government has raised N501 billion to kick-start the process, out of which N223 billion has already been disbursed to beneficiaries, while further payments are in progress.
The presidency said the intervention is expected to improve liquidity in the sector, enabling more stable electricity generation and enhanced reliability of supply to consumers.
Olu Arowolo-Verheijen, special adviser to the president on energy, said the programme is designed not only to clear debts but also to restore confidence among critical players in the sector.
She noted that the reforms would ensure timely payments to gas suppliers and power generation companies, thereby sustaining operations and improving overall system performance.
Arowolo-Verheijen added that the initiative is part of broader reforms, including improved metering and service-based tariffs that align electricity costs with quality of supply, while prioritising power to businesses and industries.
Tinubu also commended stakeholders involved in resolving the sector’s legacy issues and confirmed that the next phase of the programme, tagged Series II, will commence within the current quarter.
