President Bola Ahmed Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.
The announcement was made on Sunday in a statement by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga.
The long-standing debts, he said, accumulated between February 2015 and March 2025.
He explained that following verification, ₦3.3 trillion had been agreed as a full and final settlement, ensuring a fair and transparent resolution.
He added that implementation had begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion.
The federal government, the media aide said, had already raised ₦501 billion to fund these payments.
Out of the amount, according to him, N223 billion had been disbursed, with further payments underway.
He explained that with payments reaching the power value chain, generation would be more stable.
Onanuga said with power plants supported, electricity reliability would improve.
He stated that as the sector stabilised, more investment, more jobs, and better service would follow.
“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,” Onanuga quoted Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, as saying.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen was said to have added.
President Tinubu was said to have commended all stakeholders who supported efforts to resolve the legacy issues in the power sector.
He was said to have also confirmed that the next phase (Series II) will begin this quarter.
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