- Tinubu approves ₦3.3 trillion plan to settle power sector debts, aiming to restore liquidity, investor confidence, and reliable electricity supply nationwide.
- The programme focuses on operational efficiency and sector reforms, including gas supplier payments, metering improvements, and service-based tariffs.
President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme. The plan followed a final review of legacy debts accumulated between February 2015 and March 2025 across the power value chain. Presidential Spokesperson Bayo Onanuga confirmed the approval on Sunday, April 5, 2026.
The repayment plan ensures a fair, transparent, and credible resolution of the liabilities. Implementation of the plan has already started. So far, 15 power generation companies have signed settlement agreements totaling N2.3 trillion. The Federal Government has raised ₦501 billion to support the initial phase, disbursing ₦223 billion to beneficiaries while further payments continue.
Furthermore, Onanuga noted that the intervention would improve liquidity across the sector, allowing power plants to operate more efficiently and sustain electricity generation. He added that the reforms would boost investor confidence, attract new investments, and create jobs.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, emphasised that the programme goes beyond debt settlement. She explained that it ensures gas suppliers are paid, power plants operate sustainably, and the electricity system functions reliably. The initiative also ties tariffs to service delivery and introduces improved metering to enhance efficiency and accountability.
The government will prioritise reliable power supply for industries, businesses, and small enterprises to drive economic growth. Arowolo-Verheijen summarised the goal: “More reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
President Tinubu commended stakeholders for supporting the resolution of longstanding sector challenges. He also confirmed that the next phase of the programme, Series II, will begin within the current quarter.