President Bola Tinubu has greenlit a ₦3.3 trillion repayment strategy to clear a decade’s worth of power sector debts and stabilize Nigeria’s electricity supply.
Covering the period from February 2015 to March 2025, the “full and final settlement” aims to resolve financial bottlenecks that have long hindered the national grid.
Presidential spokesperson Bayo Onanuga confirmed that implementation is already underway.
So far, 15 power plants have signed agreements for ₦2.3 trillion of the total debt.
The federal government has mobilized ₦501 billion for the initial phase, with ₦223 billion already disbursed to gas suppliers and generation companies.
President Tinubu noted that this liquidity injection is crucial for grid reliability and announced that the next phase of reforms, Series II, will launch this quarter.
Commenting on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the settlement goes beyond clearing debts.
It is designed to restore confidence across the power sector, ensure plants remain operational, and improve the overall functioning of the electricity system.
“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 reforms will be accompanied by better metering and service-based tariffs, linking consumer payments to the quality of electricity received.
Priority will also be given to businesses, industries, and small enterprises to support 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.
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