President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector and restoring reliable electricity across the country.

The approval follows a comprehensive review under the Presidential Power Sector Financial Reforms Programme, targeting legacy debts that have plagued the industry for over a decade.

According to officials, the debts—accumulated between February 2015 and March 2025—have now been verified, with ₦3.3 trillion agreed upon as a full and final settlement. The move is expected to bring transparency and closure to longstanding financial obligations within the power value chain.

The implementation phase has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion.

To fund the initiative, the Federal Government has raised ₦501 billion so far, out of which ₦223 billion has already been disbursed. Authorities confirm that further payments are currently in progress.

Experts say the settlement is a critical step toward stabilising electricity generation and improving supply nationwide.

With funds flowing through the power value chain, power plants are expected to operate more efficiently, leading to more consistent electricity for homes and businesses.

Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the initiative as a foundational step toward rebuilding trust 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.

She added that the initiative forms part of a wider reform strategy, including improved metering systems and service-based tariffs designed to align electricity costs with quality of service.

The government is also prioritising power supply to key sectors such as businesses, industries, and small enterprises to drive economic growth and job creation.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.

President Tinubu commended stakeholders across the power sector for their role in addressing the longstanding challenges. He also confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.