President Bola Tinubu has approved a payment plan of N3.3 trillion to as part of the Federal Government’s fiscal measures to clear the outstanding debts owed operating entities in the power sector under the Presidential Power Sector Financial Reforms Programme.
The debt repayment plan followed the final review of the legacy debts owed by the government in the power sector for more than a decade.
According to a statement on the approved payment plan issued by the Special Adviser to the President (Information and Strategy), Bayo Onanuga, the long-standing debts accumulated between February 2015 and March 2025, and following verification, N3.3 trillion was agreed by the government and power sector operators as a full and final settlement in order to ensure a fair and transparent resolution of the debt crisis.
He stated that implementation of the plan had begun, with 15 power plants signing settlement agreements totalling N2.3 trillion.
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Onanuga disclosed that the Federal Government had already raised N501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway for the purposes of boosting power generation and supply nationwide.
He expressed optimism that with power plants supported, electricity reliability will improve and as the sector stabilises, more investments, jobs, and better service would be witnessed in the country.
The President’s spokesperson quoted the Special Adviser on Energy to President, Olu Arowolo-Verheijen as saying that “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”, she added.
While commending all stakeholders in the power sector for their efforts to resolve the legacy issues in the power sector, the President has confirmed that the next phase (Series II) of the payment plan will begin this quarter
