President Bola Tinubu has approved a N3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and improving electricity supply across the country.
The approval covers outstanding obligations under the Presidential Power Sector Financial Reforms Programme, following what the Presidency described as a final review of legacy debts that have weighed on the sector for more than a decade.
According to a State House press release issued on April 5, 2026, the debts accumulated between February 2015 and March 2025. After verification, the Federal Government agreed on N3.3 trillion as full and final settlement.
The Presidency said implementation of the repayment plan has already started, with 15 power plants signing settlement agreements valued at N2.3 trillion.
It added that the Federal Government has so far raised N501 billion to support the payments, out of which N223 billion has already been disbursed, while further disbursements are ongoing.
The government said the intervention is expected to improve stability across the power value chain, support electricity generation, and strengthen reliability of supply to consumers.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is designed to restore confidence in the power sector by ensuring that gas suppliers are paid, power plants remain operational, and the system functions more reliably.
She said the debt settlement forms part of wider reforms in the sector, including improved metering and service-based tariffs linked to the quality of electricity supplied.
Arowolo-Verheijen also said the government is prioritising electricity supply to businesses, industries and small enterprises, noting that reliable power is essential for job creation, livelihoods and economic growth.
President Tinubu commended stakeholders involved in efforts to address the sector’s legacy challenges and confirmed that the next phase of the programme, known as Series II, will begin this quarter.
