Tinubu Approves N3.3tn Debt Repayment Plan to Boost Power Supply
President Bola Tinubu has approved a N3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move the Federal Government says will help restore more reliable electricity supply across the country.
The approval was made under the Presidential Power Sector Financial Reforms Programme following what officials described as a final review of legacy debts that have weighed on the sector for over a decade.
According to a State House press statement issued on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the debts accumulated between February 2015 and March 2025.
The statement said the verified sum of N3.3 trillion had now been agreed upon as a “full and final settlement” intended to resolve the lingering financial obligations in a fair and transparent manner.
It added that implementation of the repayment plan had already commenced, with 15 power generation companies signing settlement agreements worth a combined N2.3 trillion.
The Federal Government, according to the statement, has so far raised N501 billion to support the payments, out of which N223 billion has already been disbursed, while additional disbursements are ongoing.
Officials said the intervention is expected to improve stability in electricity generation by easing financial pressure on key players in the power value chain, particularly power plants and gas suppliers.
They also expressed optimism that resolving the debts would strengthen investor confidence in the sector, create jobs, and improve service delivery to electricity consumers.
Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme was designed not only to settle inherited liabilities but also 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.
Verheijen noted that the debt resolution plan forms part of a broader package of reforms being implemented by the Tinubu administration to reposition the power sector.
She said the reforms include improved metering and service-based tariffs that align electricity charges with the quality of service provided to consumers.
According to her, the government is also focusing on improving electricity supply to businesses, industries and small enterprises, describing reliable power as essential to job creation, economic growth and sustainable livelihoods.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
Tinubu also commended stakeholders involved in the effort to address the sector’s long-standing challenges and confirmed that the next phase of the programme, tagged Series II, will begin this quarter.
