President Bola Tinubu has approved a payment plan to settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
Presidential spokesman, Bayo Onanuga, announced this in a statement on Sunday.
He said the decision followed the final review of the legacy debts that have beset the power sector for more than a decade.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
“Implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion. The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.
“And as the sector stabilises, more investment, more jobs, and better service will follow,” said Onanuga.
He further quoted the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, as saying “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.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“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.”
Tinubu commended all stakeholders who supported efforts to resolve the legacy issues in the power sector.
He has also confirmed that the next phase (Series II) will begin this quarter, said Onanuga.
