Nigeria Approves N3.3 Trillion Power Sector Payment Plan

The Nigerian government, under President Bola Ahmed Tinubu, has approved a N3.3 trillion payment plan aimed at clearing long-standing debts owed to operators in the power sector. This initiative is designed to restore reliable electricity supply across the country.

The plan follows a comprehensive review of legacy obligations accumulated from February 2015 to March 2025. The N3.3 trillion represents a full and final settlement intended to bring transparency and closure to financial liabilities that have plagued the sector for decades.

So far, 15 power generation companies have signed settlement agreements valued at N2.3 trillion, with the government raising N501 billion for the program and disbursing N223 billion. The intervention is expected to stabilize electricity generation and ensure that gas suppliers receive payments owed, thereby improving operational capacity across the value chain.

Special adviser to the president, Bayo Onanuga, emphasized that this program goes beyond financial reconciliation and aims to restore confidence in the power sector.