Electricity: Tinubu approves ₦3.3trn power sector debt settlement plan to boost supply
President Bola Ahmed Tinubu has approved a comprehensive payment plan aimed at clearing longstanding debts in Nigeria’s power sector, marking a major step under the Presidential Power Sector Financial Reforms Programme.
The announcement was contained in a statement issued on April 5, 2026, by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
The approval follows a final review of legacy debts that have burdened the sector for over a decade, with liabilities accumulated between February 2015 and March 2025.
After verification, the Federal Government agreed on ₦3.3 trillion as a full and final settlement, in a move described as fair and transparent.
Implementation of the repayment plan has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. To kick-start the process, the government has raised ₦501 billion, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
The development is expected to significantly improve electricity supply across the country, as funds begin to flow through the power value chain.
Analysts say the settlement will enhance generation stability and strengthen the overall reliability of electricity services.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt clearance, noting that it is designed to rebuild confidence 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.
Arowolo-Verheijen added that the effort forms part of broader reforms, including improved metering and service-based tariffs that align electricity costs with quality of supply.
She further noted that the government is prioritising electricity supply to businesses, industries, and small enterprises to drive job creation and economic growth.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she said.
President Tinubu also commended stakeholders for their support in resolving the sector’s long-standing issues and confirmed that the next phase of the programme, Series II, will commence within the current quarter.