In a bold move to rescue Nigeria’s troubled electricity sector, President Bola Ahmed Tinubu has approved a massive ₦3.3 trillion payment plan aimed at clearing long-standing debts and restoring stable power supply nationwide.
The intervention targets legacy liabilities accumulated over a decade, with officials confirming that the verified sum represents a full and final settlement to reset the sector’s financial health.
Under the Presidential Power Sector Financial Reforms Programme, implementation is already gaining momentum, as 15 power generation companies have signed settlement deals worth ₦2.3 trillion. So far, the Federal Government has raised ₦501 billion, with ₦223 billion already disbursed to kick-start the recovery process.
Top government officials say the move will inject fresh life into the power value chain — ensuring gas suppliers are paid, power plants remain operational, and electricity generation becomes more reliable for millions of Nigerians.
Special Adviser on Energy, Olu Arowolo-Verheijen, described the initiative as a “turning point,” noting that beyond debt clearance, it is designed to rebuild confidence and attract new investments into the sector.
She revealed that the reforms also include expanded metering and service-based tariffs that align electricity billing with quality of supply, alongside a strategic push to prioritise power for businesses and industries.
“With improved liquidity and structure, the system is expected to deliver better service, create jobs, and support economic growth,” she said.
President Tinubu has also directed the immediate rollout of the next phase of the programme, signaling a sustained push to finally end Nigeria’s chronic power woes.
The announcement was conveyed in a statement by presidential spokesman Bayo Onanuga, who noted that the President commended stakeholders for driving the landmark resolution.
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