By Feyisola Adeyeha
In a bid to stabilise electricity in the country, President Bola Tinubu has approved the payment of ₦3.3 trillion as the final settlement of outstanding debts owed by the power sector. He also endorsed the payment plan to address these liabilities under the Presidential Power Sector Financial Reforms Programme.
The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.
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.
In a statement released by Bayo Onanuga, Special Adviser to the President on Information and Strategy, implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. 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.
With this settlement, the electricity sector is expected to begin to experience better service delivery and stability across the value chain.
“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,” explained Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu.
“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.
“The government is also prioritising power supply to businesses, industries, and small enterprises , because reliable electricity is critical to 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.
President Tinubu commended all stakeholders who supported efforts to resolve the legacy issues in the power sector. He also confirmed that the next phase (Series II) will begin this quarter.
The ₦3.3 trillion plan is a significant step towards addressing Nigeria’s outdated grid infrastructure and poor maintenance culture, key contributors to the power crisis.
Dr. Adewale, an energy expert, noted the initiative is positive but said the sector still needs investment and reform. “The government needs to prioritise infrastructure upgrades and encourage private sector participation,” he said.
The plan is expected to tackle legacy debts, improve power sector performance, and support economic growth, with stakeholders hopeful for better electricity supply.
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