Bola Tinubu has given the green light for a structured repayment plan aimed at clearing longstanding liabilities under the Presidential Power Sector Financial Reforms Programme
Presidential spokesman Bayo Onanuga disclosed that the move comes after a comprehensive audit of historic debts that have weighed down Nigeria’s power industry for over a decade, spanning from February 2015 to March 2025.
After verification, the total sum of ₦3.3 trillion was approved as a final settlement figure, marking what officials described as a transparent and balanced resolution.
Implementation is already underway, with 15 electricity generation companies signing agreements worth ₦2.3 trillion. So far, the Federal Government has secured ₦501 billion to kickstart the process, out of which ₦223 billion has been paid, while additional disbursements are ongoing.
Authorities say the intervention is expected to strengthen the entire electricity value chain, leading to improved power generation and more reliable supply across the country. They added that stabilising the sector would also encourage fresh investments, create employment opportunities, and enhance service delivery.
Reacting to the development, Olu Arowolo-Verheijen said the initiative goes beyond clearing debts, noting that it is designed to rebuild trust within the sector.
“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,” explained “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.”
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