By Chibuike Nwabuko
ABUJA (PRECISE POST) – President Bola Ahmed Tinubu has approved a comprehensive payment plan to clear long-standing debts in Nigeria’s power sector, a move aimed at stabilising electricity generation and improving supply across the country.
The approval, announced by presidential spokesman Bayo Onanuga oj his X handle on Sunday, follows the final review of legacy debts accumulated under the Presidential Power Sector Financial Reforms Programme over more than a decade.
According to the statement, the debts, incurred between February 2015 and March 2025. have been verified, with ₦3.3 trillion agreed as a full and final settlement figure to ensure a transparent and equitable resolution.
Implementation of the repayment plan is already underway. So far, 15 power generation companies have signed settlement agreements amounting to ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the exercise, with ₦223 billion already disbursed and additional payments in progress.
The government said the intervention is expected to have a direct impact on electricity supply, as improved cash flow within the power value chain will support more stable generation and enhance overall reliability.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, explained that the initiative goes beyond debt clearance, describing it as a critical step toward rebuilding confidence in the sector.
She noted that ensuring timely payments to gas suppliers and power generation companies would help sustain operations and improve system performance.
Arowolo-Verheijen added that the programme aligns with broader reforms, including improved metering and the introduction of service-based tariffs designed to link electricity costs with quality of supply.
She further emphasised that the government is prioritising reliable power for businesses, industries, and small enterprises, given its importance to job creation and economic growth.
President Tinubu also commended stakeholders for their roles in resolving the sector’s long-standing financial challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.
The administration expressed optimism that the reforms would deliver more reliable electricity to households, strengthen support for businesses, and drive sustainable growth in Nigeria’s power sector.
