President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, a move aimed at improving electricity reliability, restoring investor confidence, and stabilising the energy value chain.
Debt settlement plan
The government verified power sector debts from 2015 to 2025 and approved ₦3.3 trillion as full settlement.
15 power plants signed ₦2.3 trillion agreements, with ₦501 billion raised and ₦223 billion already disbursed. Further payments underway.
What was said
Olu Arowolo-Verheijen, Special Adviser on Energy to President Bola Ahmed Tinubu, said the plan will ensure gas suppliers are paid, power plants remain operational, and electricity supply becomes more reliable.
She added that reforms include improved metering and service-based tariffs, linking electricity costs more directly to the quality of supply.
What Next
President Tinubu commended stakeholders involved in resolving the sector’s legacy issues and confirmed that the next phase of the programme (Series II) will commence within the current quarter.
