Tinubu Approves ₦3.3tn Payment Plan to Restore Reliable Electricity

President Bola Tinubu has approved a payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme, as part of efforts to restore more reliable electricity supply across the country. The Presidency said the plan followed a final review of long-standing liabilities that have weighed down the sector for more than a decade. 

According to the State House release, the legacy debts accumulated between February 2015 and March 2025, and after verification, ₦3.3 trillion was agreed as a full and final settlement. The government said the arrangement is intended to provide a fair and transparent resolution to the debt overhang that has affected electricity generation and sector stability. 

Implementation has already begun, with 15 power plants signing settlement agreements valued at ₦2.3 trillion. The Federal Government has also raised ₦501 billion to support the payments, out of which ₦223 billion has already been disbursed, while further payments are underway. 

The Presidency says the intervention is expected to improve liquidity across the power value chain, support more stable generation and strengthen confidence among investors and operators. Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is not only about clearing old debts, but also about ensuring gas suppliers are paid, power plants keep running and the electricity system works more reliably. 

She added that the initiative is part of broader reforms already underway, including improved metering and service-based tariffs linked to electricity quality, while the government also plans to prioritise power supply to businesses, industries and small enterprises to support jobs, livelihoods and economic growth. The Presidency further said the next phase of the programme, Series II, will begin this quarter.