President Bola Ahmed Tinubu has approved a comprehensive repayment plan to settle long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.
The decision follows a final review of legacy debts accumulated over a decade, from February 2015 to March 2025. After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement, marking a major step toward restoring stability in the sector.
Implementation is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. So far, the government has raised ₦501 billion to fund the repayments, out of which ₦223 billion has been disbursed, while additional payments are in progress.
The initiative is expected to improve electricity generation and reliability nationwide. By ensuring that power plants and gas suppliers are paid, the government aims to stabilise the power value chain and enhance service delivery to consumers.
According to Olu Arowolo-Verheijen, the programme goes beyond debt settlement. She noted that it is designed to rebuild confidence in the sector, enable consistent operations of power plants, and support ongoing reforms.
She added that complementary measures—such as improved metering and service-based tariffs—are being implemented to align electricity costs with quality of service. The government is also prioritising power supply to industries, businesses, and small enterprises to drive economic growth and job creation.
President Tinubu commended stakeholders for their role in addressing the sector’s long-standing challenges and confirmed that the next phase of the programme, Series II, will commence within the current quarter.
The reforms are expected to lay the foundation for a more reliable power supply system, improved investor confidence, and sustainable growth in Nigeria’s energy sector.
