Tinubu Approves N3.3 Trillion for Power Sector Debts

President Bola Tinubu has approved a N3.3 trillion payment plan aimed at resolving long-standing debts in Nigeria's power sector and improving electricity supply. This initiative addresses legacy debts accumulated from February 2015 to March 2025 and is part of a presidential power sector financial reform program following a comprehensive review.

The payment plan ensures transparency and fairness, with the Nigerian government already raising N501 billion to facilitate the payments, including an initial disbursement of N223 billion. Fifteen power plants have signed settlement agreements totaling N2.3 trillion.

Special adviser on energy, Olu Arowolo Verheijen, emphasized that the settlement will stabilize the power value chain and restore confidence in the sector. The plan is designed not only to settle legacy debts but also to ensure gas suppliers are paid, allowing power plants to operate reliably.

The next phase of reforms, referred to as Series II, is set to commence in the upcoming quarter.