Tinubu targets stable power supply with ₦3.3trn settlement plan

Stanley Ihedigbo

President Bola Ahmed Tinubu has approved a ₦3.3trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a decisive move to restore stability and improve electricity supply across the country.

The approval, announced in a State House press release on Sunday, marks a significant milestone under the Presidential Power Sector Financial Reforms Programme, which seeks to address legacy issues that have hindered the sector’s performance for over a decade.

According to the statement, signed by Special Adviser to the President (Information and Strategy), Mr. Bayo Onanuga, the debts accumulated between February 2015 and March 2025 have now undergone a comprehensive verification process, with ₦3.3trn agreed upon as a full and final settlement figure.

The move is expected to provide a transparent and equitable resolution to longstanding financial obligations within the power value chain.

Implementation of the repayment plan is already underway. So far, 15 power generation companies have signed settlement agreements amounting to ₦2.3trn. The Federal Government has raised ₦501bn to kick-start the process, out of which ₦223bn has already been disbursed, while further payments are ongoing.

The government said the intervention is designed to inject liquidity into the power sector, thereby ensuring improved operational capacity for generation companies and a more reliable electricity supply for Nigerians.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, explained that the initiative goes beyond clearing debts, noting that it is a strategic effort to rebuild confidence in the sector.

“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.

She further highlighted that the debt settlement forms part of a broader reform agenda, which includes the introduction of improved metering systems and service-based tariffs that align electricity costs with the quality of supply.

Arowolo-Verheijen added that the government is also prioritising electricity supply to key sectors such as industries, businesses, and small enterprises, stressing that reliable power is essential for job creation, economic growth, and improved livelihoods.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she stated.
President Tinubu also commended stakeholders who contributed to resolving the lingering challenges in the sector and confirmed that the next phase of the programme, known as Series II, is set to commence within the current quarter.

The development signals a renewed commitment by the Federal Government to tackle structural issues in Nigeria’s electricity sector, with the expectation that improved funding and reforms will translate into better service delivery and long-term sustainability.