President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector, in a move expected to improve electricity supply nationwide.

The approval, announced in a State House press release on Sunday, is part of the Presidential Power Sector Financial Reforms Programme designed to address legacy liabilities that have hindered the industry for over a decade.

The debts, accumulated between February 2015 and March 2025, were subjected to a comprehensive verification process, after which ₦3.3 trillion was agreed upon as a full and final settlement figure to ensure transparency and fairness.

Implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has so far mobilised ₦501 billion to kick-start the process, out of which ₦223 billion has been disbursed, while additional payments are ongoing.

The initiative is expected to stabilise electricity generation by ensuring that key players across the power value chain, particularly generation companies and gas suppliers, receive due payments to sustain operations.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, explained that the programme goes beyond debt settlement, noting that it is designed to rebuild confidence in the sector and guarantee more reliable power supply.

She added that the reforms are part of broader efforts that include improved metering systems and service-based tariffs aimed at aligning electricity costs with service delivery.

The government is also prioritising power supply to businesses, industries, and small enterprises, recognising the critical role of stable electricity in job creation, economic growth, and improved livelihoods.

President Tinubu commended stakeholders for their support in resolving the sector’s longstanding challenges and confirmed that the next phase of the programme, known as Series II, will commence within the current quarter.

The administration expressed optimism that the initiative will ultimately deliver more reliable electricity to homes and strengthen Nigeria’s economic productivity.