President Bola Tinubu has sanctioned a payment plan amounting to ₦3.3 trillion, which is designed to address the enduring debts within Nigeria’s power sector and enhance the reliability of electricity supply.
The plan pertains to the legacy debts accrued between February 2015 and March 2025 as part of the Presidential Power Sector Financial Reforms Programme.
After conducting a thorough review, the government has agreed upon a sum of ₦3.3 trillion as a complete and final settlement, thereby ensuring transparency and fairness.
A statement released on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, indicated that the implementation of the repayment plan has commenced, with settlement agreements for fifteen power plants already signed, amounting to a total of ₦2.3 trillion.
“President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
“The debt repayment plan 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.”
