By Yusuf Danjuma Yunusa
President Bola Tinubu has approved a payment plan to clear outstanding liabilities under the Presidential Power Sector Financial Reforms Programme, marking a major step toward resolving over a decade of financial gridlock in Nigeria’s electricity value chain.
According to a statement by presidential spokesman Bayo Onanuga, the repayment plan follows a final verification of legacy debts that accumulated in the power sector between February 2015 and March 2025. Following the review, the government and stakeholders agreed on a full and final settlement of ₦3.3 trillion, described by Onanuga as a “fair and transparent resolution.”
Implementation has already commenced, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund these payments, of which ₦223 billion has been disbursed. Further disbursements are underway.
Onanuga noted that the settlement would bring tangible benefits to electricity consumers and the broader economy:
-More stable generation– With payments reaching the power value chain, generation will become more reliable.
-Improved electricity supply– Financial support for power plants will enhance operational stability.
-Boosted investment and jobs– A stabilising sector is expected to attract new investment, create jobs, and improve service delivery.
Commenting on the development, Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, said the programme goes beyond debt resolution.
“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,” he explained.
He added that the initiative is part of broader reforms already underway, including better metering and service-based tariffs that link customer payments to the quality of electricity received. 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,” Arowolo-Verheijen said.
President Tinubu commended all stakeholders who supported efforts to resolve the legacy issues in the power sector. He also confirmed that the next phase of the programme (Series II) will begin within the current quarter.
