President Bola Tinubu has announced the approval of ₦3.3 trillion to clear outstanding debts under the Presidential Power Sector Financial Reforms Programme between February 2015 and March 2025.
The debt repayment plan follows a final review of legacy debts that have burdened the power sector for over a decade.
This was disclosed in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement reads in part.
President Tinubu revealed that implementation has commenced, with 15 power plants signing settlement agreements totaling ₦2.3 trillion.
He also noted that the Federal Government has already raised ₦501 billion to fund these payments.
“Out of the amount, ₦223 billion has been disbursed, with further payments underway. What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve,” he said.
The President added that as the sector stabilises, more investment, jobs, and improved service will follow.
He commended all stakeholders who supported efforts to resolve legacy issues in the power sector, affirming that the next phase (Series II) will begin this quarter.
Commenting on the development, the Special Adviser to President Tinubu on Energy, Olu Arowolo-Verheijen explained: “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.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.”
Arowolo-Verheijen equally revealed that the FG is prioritising power supply for businesses, industries, and small enterprises, stressing that reliable electricity is critical for creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
