President Bola Tinubu has approved the payment of ₦3.3 trillion to settle accumulated debts owed to stakeholders in the power sector between February 2015 and March 2025.
According to Presidential spokesperson Bayo Onanuga, the debt repayment follows a final review of the legacy liabilities that have burdened the sector for over a decade.
Implementation has already started, with 15 power plants signing settlement agreements worth ₦2.3 trillion.
“The Federal Government has raised ₦501 billion to fund these payments. Of this, ₦223 billion has been disbursed, with further releases underway,” the statement said.
ALSO READ: Obi faults Tinubu over power supply, cites campaign promise
The initiative, under the Power Sector Financial Reforms Programme, aims to ensure a fair and transparent resolution while stabilising electricity generation and distribution.
Highlighting the impact of the plan, the statement said: “With payments reaching the power value chain, generation will be more stable.
“With power plants supported, electricity reliability will improve. As the sector stabilises, more investment, more jobs, and better service will follow.”
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, added: “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.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises, because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
The statement also noted that President Tinubu has commended stakeholders who contributed to resolving the legacy issues and confirmed that the next phase (Series II) will commence this quarter.