Tinubu Approves N3.3 Trillion for Nigeria's Power Sector

President Bola Tinubu has approved a N3.3 trillion payment plan aimed at final settlement of outstanding debts within Nigeria's power sector, which has been plagued by legacy debts since February 2015. This payment plan is part of a broader financial reform program designed to stabilize the power supply and ensure that power plants are operational.

The Federal Government has already raised N501 billion towards this payment, with an initial disbursement of N223 billion underway. The settlement agreement involves 15 power plants, totaling N2.3 trillion, and aims to restore confidence in the sector by ensuring that gas suppliers and power plants are compensated, thereby improving electricity reliability.

Olu Arowolo Verheijen, Special Adviser on Energy to President Tinubu, emphasized that this initiative is critical for creating jobs and supporting small enterprises. The next phase of this reform program is set to begin in the second quarter of the year.