Tinubu Approves N3.3tn Plan to Clear Power Sector Debts, Boost Electricity Supply

President Bola Tinubu has approved a N3.3 trillion payment plan to settle long-standing debts in Nigeria’s electricity sector, in what officials describe as a major step toward improving power supply across the Country.

Global Mirror News gathered that the intervention is designed to clear legacy obligations accumulated within the power sector between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.

According to a statement issued on Sunday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Federal Government approved the N3.3 trillion figure as a “full and final settlement” after carrying out a detailed verification and review of the debts.

The Presidency said the move is expected to strengthen electricity generation, restore confidence among investors and operators, and improve the reliability of power supply for homes and businesses.

“President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme,” the statement said.

It added that the debt burden had weighed heavily on the power sector for more than a decade, limiting the ability of generation companies and gas suppliers to operate effectively.

Global Mirror News further gathered that implementation of the settlement has already begun, with 15 power generation companies signing agreements worth N2.3 trillion.

The Federal Government has reportedly raised N501 billion to kick-start the repayment process. Out of that amount, N223 billion has already been paid to stakeholders, while additional disbursements are currently underway.

Officials said the payments would allow power plants to maintain operations, ensure gas suppliers receive outstanding payments, and stabilise the entire electricity value chain.

“What this means for Nigerians is that with payments reaching the power value chain, electricity generation will become more stable and supply reliability will improve,” the statement added.

Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the debt settlement goes beyond clearing old obligations and is aimed at rebuilding confidence in the power industry.

“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,” she said.

She explained that the current reforms are also tied to broader government efforts, including improved metering systems and service-based electricity tariffs, which are intended to ensure consumers pay in line with the quality of electricity they receive.

The presidency also said priority would be given to supplying electricity to businesses, manufacturers, and small enterprises in order to stimulate economic activity, create jobs, and support national growth.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” Arowolo-Verheijen added.

President Tinubu also commended stakeholders involved in resolving the long-standing challenges in the sector and disclosed that the next phase of the reforms, tagged Series II, will begin before the end of the current quarter.