By Chinenye Onwusonye
President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply and restore investor confidence.
In a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, and dated April 5, 2026, the government said the initiative falls under the Presidential Power Sector Financial Reforms Programme and follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025.
According to the statement, the verified ₦3.3 trillion represents a full and final settlement of obligations that have weighed on the sector for over a decade. Implementation of the plan is already underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion.
The Federal Government has so far raised ₦501 billion to support the payments, out of which ₦223 billion has been disbursed, while additional disbursements are ongoing.
Officials say the intervention is expected to stabilise electricity generation by ensuring that power plants and gas suppliers receive payments, thereby improving reliability across the value chain. The move is also projected to attract investment, create jobs, and enhance service delivery in the sector.
Special Adviser on Energy, Olu Arowolo-Verheijen, said the programme is designed not only to clear debts but to rebuild confidence in the system and support broader reforms, including improved metering and service-based tariffs.
The President also commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
