Tinubu approves ₦3.3trn to settle power sector debt, improve electricity supply

President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, aimed at improving the electricity generation and supply across the country.

The approval followed a final review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.

In a statement issued on Sunday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, said that after verification, the government agreed on ₦3.3 trillion as a full and final settlement to resolve the financial burdens that have affected the sector for more than a decade.

Implementation of the plan has already begun, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. he Federal Government has so far raised about ₦501 billion to finance the payments, with ₦223 billion already disbursed while further payments are ongoing.

Government officials say the intervention is expected to stabilise electricity generation by ensuring liquidity across the power value chain and supporting the operations of generation companies.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt repayment and is intended to rebuild confidence in Nigeria’s power 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.