By Ighomuaye Lucky. O
President Bola Tinubu has okayed a well detailed staggering N3.3 trillion payment plan to settle longstanding debts that has brought the Nigeria’s power sector to it its kneel.
According to a statement made available to Journalists by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the initiative falls under the Presidential Power Sector Financial Reforms Programme, targeting legacy debts accumulated between February 2015 and March 2025.
After a thorough verification process, the Federal Government agreed on N3.3 trillion as the full and final settlement, ensuring transparency and fairness.
Implementation is already underway, with 15 power plants signing agreements totaling N2.3 trillion.
The government has raised N501 billion to fund these payments, disbursing N223 billion so far, while further tranches are in progress.
Special Adviser on Energy Olu Arowolo-Verheijen, explained the broader impact: “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 highlighted ongoing reforms, adding: “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 payments are expected to stabilise power generation, improve electricity reliability, attract investments, create jobs, and enhance services nationwide.
Arowolo-Verheijen emphasized the economic focus: “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,” she added.
President Tinubu commended all stakeholders for their support in resolving these decade-old issues and confirmed that the next phase, Series II, will commence this quarter.
Source: Sun
