President Bola Tinubu has given his approval for a payment strategy designed to clear the accumulated debts under the Presidential Power Sector Financial Reforms Programme.
According to presidential spokesperson Bayo Onanuga, the debt repayment framework was finalized after a thorough review of the legacy debts that have persistently impacted the power sector for over ten years.
The long-standing debts in question were incurred between February 2015 and March 2025.
Following a verification process, the sum of ₦3.3 trillion has been designated as a complete and final settlement, ensuring a fair and transparent resolution to the matter.
The implementation of this plan has commenced, with fifteen power generation plants entering into settlement agreements valued at a total of ₦2.3 trillion. The Federal Government has already secured ₦501 billion to finance these payments, out of which ₦223 billion has been disbursed, with additional payments still in progress.
This development is expected to lead to more stable electricity generation as payments reach various stakeholders in the power value chain. The improved support for power plants is anticipated to enhance the reliability of electricity supply.
Furthermore, the stabilization of the sector is projected to attract further investment, create more employment opportunities, and lead to enhanced service delivery.
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, commented that this programme extends beyond merely settling old debts; it aims to restore confidence throughout the power sector. He emphasized that it ensures gas suppliers are paid, power plants can continue operations, and the system becomes more dependable.
He further explained that this initiative is part of a larger set of ongoing reforms, including improvements in metering and the introduction of service- based tariffs that align charges with the quality of electricity provided.
The government is also prioritizing electricity supply to businesses, industries, and small enterprises, recognizing that consistent power is vital for job creation, supporting livelihoods, and fostering economic growth.
The overarching objective is straightforward: to provide more reliable power for households, offer stronger support for businesses, and establish a more effective system for all Nigerians.
President Tinubu has expressed his gratitude to all parties involved who contributed to resolving the long-standing issues within the power sector.
He also confirmed that the subsequent phase of the program (Series II) is scheduled to commence this quarter.
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