By Our Correspondent
National News – Bola Ahmed Tinubu has approved a ₦3.3 trillion repayment plan aimed at clearing long-standing debts in Nigeria’s electricity sector and improving the reliability of power supply across the country.
The decision, announced on Sunday, forms part of the Federal Government’s effort to stabilise the energy industry and strengthen electricity generation for homes and businesses.
According to a statement by the presidential spokesperson, Bayo Onanuga, the initiative addresses legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
After a comprehensive financial review, the government agreed that ₦3.3 trillion would serve as the final settlement to resolve the outstanding obligations affecting electricity generation companies.
Officials explained that the programme aims to restore financial stability across the power value chain.
By paying off the debts owed to electricity producers and gas suppliers, the government hopes to ensure consistent operations of power plants and improve electricity reliability nationwide.
Implementation of the plan has already started. About 15 power plants have signed settlement agreements worth ₦2.3 trillion, representing a major portion of the approved payment arrangement.
The Federal Government has so far raised ₦501 billion to fund the process, out of which ₦223 billion has already been disbursed to beneficiaries.
Additional payments are expected to continue in phases as the settlement plan progresses.
The Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the programme goes beyond simply clearing debts.
She noted that the reform seeks to rebuild confidence in Nigeria’s electricity market by ensuring that energy producers, gas suppliers, and other stakeholders are paid promptly for their services.
She added that the initiative will support broader reforms in the sector, including improved electricity metering and service-based tariffs designed to align consumer payments with the quality of power supplied.
Authorities also plan to prioritise electricity distribution to businesses, industries, and small enterprises in order to boost economic productivity, encourage investment, and support job creation.
The government confirmed that the next phase of the Presidential Power Sector Financial Reforms Programme, known as Series II, will begin later this quarter.
