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President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to finally settle outstanding legacy debts in Nigeria’s power sector and restore reliable electricity supply across the country.
The landmark approval, announced today by the State House, forms a core component of the Presidential Power Sector Financial Reforms Programme. It targets long-standing debts that accumulated between February 2015 and March 2025 and have hampered generation, transmission, and distribution of electricity for over a decade.
Following a comprehensive verification exercise, the Federal Government and stakeholders agreed on ₦3.3 trillion as the full and final settlement of verified legacy obligations. The move ensures transparency, fairness, and a clean slate for the sector.
Implementation of the payment plan has already commenced. Fifteen power plants have signed settlement agreements totalling ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the initiative, with ₦223 billion already disbursed to beneficiaries. Further payments are underway.
President Tinubu’s approval is expected to stabilise power generation, boost investor confidence, and deliver more reliable electricity to homes, businesses, and industries nationwide.
In a statement, Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, said:
“President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme. With payments reaching the power value chain, generation will be more stable, and Nigerians will begin to enjoy improved electricity supply.”
The President has also directed the immediate launch of Series II of the reforms this quarter to extend the settlement framework to remaining verified claims and accelerate the overall transformation of the power sector.
This decisive intervention underscores the Tinubu administration’s commitment to resolving the structural challenges in the power sector, attracting private investment, and delivering tangible improvements in the