President Bola Tinubu has approved a ₦3.3 trillion repayment plan to clear long-standing debts in Nigeria’s power sector, a move aimed at improving electricity supply and boosting investor confidence.
The announcement was made in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
According to the statement, the decision followed a comprehensive review of legacy debts accumulated over a 10-year period between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
“Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement partly read.
Implementation has already begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The government has so far raised ₦501 billion for the programme, with ₦223 billion already disbursed while additional payments continue.
Officials say the initiative is expected to stabilize the sector by improving liquidity and ensuring more reliable electricity generation.
“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.
The government also emphasized that the plan is part of wider reforms aimed at improving service delivery and supporting economic growth.
