Tinubu Clears ₦3.3tn Power Sector Debt to Improve Electricity Reliability

President Bola Tinubu has approved a ₦3.3 trillion repayment plan to settle outstanding debts in the power sector, a move aimed at restoring stable electricity supply across Nigeria.

The plan, under the Presidential Power Sector Financial Reforms Programme, addresses legacy debts accumulated between 2015 and 2025, according to a statement by presidential spokesman Bayo Onanuga.

“Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement read.

So far, 15 power plants have signed settlement agreements totalling ₦2.3 trillion, while the government has raised ₦501 billion to fund the initiative. Of that amount, ₦223 billion has already been paid, with further disbursements in progress.

Officials say the intervention will stabilise electricity generation and improve supply.

“With payments reaching the power value chain, generation will be more stable… electricity reliability will improve,” the statement added.

Energy adviser to the President, Olu Arowolo-Verheijen, said the programme is designed to rebuild trust in the sector.

“This programme is not just about settling legacy debts… ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.

She added that the reforms include better metering systems and tariffs tied to service quality, while prioritising electricity supply to businesses and industries.

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

The Presidency also confirmed that the next phase of the programme will commence this quarter, as efforts continue to stabilise the sector and attract investment.

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