President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector and improving electricity supply across the country.
The decision is part of efforts to resolve financial challenges that have affected electricity generation and distribution for over a decade. The debts, which accumulated between 2015 and 2025, have hindered the stability of the power sector.
Following a detailed review, the government agreed on ₦3.3 trillion as the final amount to settle the liabilities, with the goal of ensuring fairness and transparency in the process.
Implementation of the repayment has already begun, with about 15 power generation companies signing settlement agreements worth ₦2.3 trillion so far.
The Federal Government has also raised about ₦501 billion to kick-start the payments, out of which ₦223 billion has already been disbursed to stakeholders in the sector.
Officials say the move will help stabilise electricity generation by ensuring that power producers and gas suppliers are paid, allowing them to operate more efficiently.
According to the government, the plan is expected to improve power supply reliability for homes and businesses across Nigeria.
The Special Adviser on Energy to the President explained that the initiative is not just about clearing debts but also about restoring confidence in the power industry.
She added that the reforms would support better service delivery, including improved metering and tariffs that reflect the quality of electricity supplied.
The government also noted that priority would be given to powering businesses and industries to drive economic growth and job creation, as part of broader reforms in the sector.