Tinubu Approves N3.3trn Plan to Stabilise Power Sector

President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.

According to presidential spokesman Bayo Onanuga, the debts accumulated between February 2015 and March 2025 have now been verified, with ₦3.3 trillion agreed as a full and final settlement.

Implementation has already begun, with 15 power plants signing agreements worth ₦2.3 trillion.

The government has raised ₦501 billion, of which ₦223 billion has been disbursed, with further payments underway.

“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,” said Olu Arowolo-Verheijen, Special Adviser on Energy.

She explained that the reforms include better metering and service-based tariffs, linking payments to the quality of electricity received.

The government is also prioritising supply to businesses and industries to boost jobs and economic growth.

Onanuga noted that stabilising the sector will attract more investment, create jobs, and improve service delivery.

“With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve,” he said.

Tinubu commended stakeholders for supporting the resolution of legacy issues and confirmed that the next phase (Series II) of the programme will begin this quarter.

The initiative is expected to mark a turning point for Nigeria’s troubled electricity sector, which has struggled for years with debt, underinvestment, and unreliable supply.