Tinubu Approves N3.3trn Debt Payment for Power Plants

President Bola Tinubu has approved a payment plan to settle a long-standing N3.3 trillion debt owed to 15 power plants, which has been accumulating since 2015. This decision, communicated by presidential spokesperson Bayo Onanuga, aims to restore constant electricity nationwide.

The payment plan is part of a presidential power sector financial reform program and follows a final review of the legacy debt affecting the sector. The repayment will occur over a timeline from February 2015 to March 2025, with a total of N2.3 trillion agreed upon for full settlement.

The federal government has already raised N501 billion for the initial payment, with N223 billion disbursed, and further payments underway. This initiative is expected to stabilize the power sector, improve electricity reliability, and support investment and job creation.

Special adviser on energy, Olu Arowolo Verheijen, emphasized that the program not only addresses legacy debt but also aims to restore confidence in the power sector and ensure suppliers are compensated to maintain operations.