By Chinedu Echianu
In an apparent response to cries from Nigerians on the deteriorating state of electricity supply across the country, President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector.
Recall that electricity generation companies had raised the alarm over increasing debts owed them and gas distribution companies totalling over N 6 trillion, leading to massive cuts in generation and the resultant poor supply in electricity.
A statement signed by Presidential spokesman, Bayo Onanuga and made available to newsmen on Sunday says the President’s approval follows a final review of legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
According to the statement, after verification, the government agreed on ₦3.3 trillion as a full and final settlement to address the liabilities, adding that implementation of the plan is already underway as 15 power generation companies have signed settlement agreements valued at ₦2.3 trillion.
The statement further says that the Federal Government has raised ₦501 billion to fund the initiative, out of which ₦223 billion has already been disbursed, with additional payments in progress.
Officials say the intervention is expected to stabilise electricity generation by ensuring that key players across the power value chain are paid, particularly generation companies and gas suppliers.
The statement quoting the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, says the programme goes beyond debt repayment and is designed to restore confidence in the sector.
“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 added that the initiative forms part of broader reforms, including improved metering and service-based tariffs that link electricity costs to quality of service even as the government is also prioritising power supply to businesses and industries to support economic growth, job creation, and improved livelihoods.
