PRESIDENT TINUBU TARGETS STABLE POWER SUPPLY WITH ₦3.3trn SETTLEMENT PLAN
By Emeka Amaefula
Energy
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, aiming to restore stability and significantly improve electricity supply nationwide.
The approval was announced in a State House press release on Sunday as a key milestone under the Presidential Power Sector Financial Reforms Programme. The initiative seeks to resolve legacy debts that have plagued the sector for over a decade.
According to the statement signed by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, the debts accumulated between February 2015 and March 2025 underwent a comprehensive verification process. ₦3.3 trillion was agreed upon as the full and final settlement figure.
The repayment plan is already being implemented. So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, with ₦223 billion already disbursed and further payments ongoing.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, described the intervention as more than just debt clearance.
“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.
She explained that the debt settlement is part of a broader reform agenda that includes the rollout of improved metering systems and service-based tariffs, which will align electricity costs with the quality of supply.
Arowolo-Verheijen added that the government is prioritising reliable electricity supply to critical sectors such as industries, businesses, and small enterprises, noting that stable power is crucial for job creation, economic growth, and improved livelihoods.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she stated.
President Tinubu commended all stakeholders who contributed to resolving the sector’s challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.
The initiative signals a strong commitment by the Federal Government to address structural issues in the power sector, with expectations that the combination of liquidity injection and ongoing reforms will deliver better service and long-term sustainability for Nigerians.
———–Emeka Amaefula —-+234(0)8111813069—
