President Bola Tinubu has approved a over three trillion naira (N3.3 trillion) payment framework to clear long-standing debts in Nigeria’s power sector.
The settlement covers legacy obligations accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
Following a final verification exercise, the government agreed on N3.3 trillion as a full and final settlement, aimed at ensuring transparency and fairness.
In a statement issued on Sunday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said implementation of the repayment plan has already begun.
According to the statement, 15 power generation companies have signed settlement agreements valued at N2.3 trillion.
The Federal Government has so far raised N501 billion to fund the exercise, with N223 billion already disbursed and further payments underway.
It was said that the flow of funds through the power value chain would stabilise electricity generation, improve plant operations and support more reliable supply to consumers.
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Reacting to the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, explained the programme goes beyond clearing old debts.
She disclosed that the settlement is designed to rebuild confidence in the sector by ensuring gas suppliers are paid, power plants remain operational and systemic bottlenecks are addressed.
Arowolo-Verheijen added that the initiative forms part of wider reforms, including improved metering and service-based tariffs that link consumer payments to the quality of electricity supplied.
Priority, she said, will also be given to power supply for businesses, industries and small enterprises to support jobs and economic growth.
President Tinubu commended stakeholders involved in resolving the legacy issues and confirmed that the next phase of the reforms, known as Series II, is expected to commence later this quarter.
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