President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s electricity sector, in a move the Federal Government says is intended to improve liquidity across the power value chain and support more reliable power supply. The approval was disclosed in a statement from the Presidency on the power sector reform programme.
The debt package is tied to liabilities accumulated under the Presidential Power Sector Financial Reforms Programme over more than a decade. According to the government, the verified obligations span the period from February 2015 to March 2025, and the ₦3.3 trillion figure was agreed as a final settlement after a review process.
Officials say implementation has already started, with 15 power plants said to have signed settlement agreements worth about ₦2.3 trillion. The government believes clearing the backlog will ease financial pressure on operators, strengthen investor confidence, and help stabilise electricity generation and service delivery.
The decision comes as Nigeria’s power sector continues to struggle with weak generation, liquidity problems, and load shedding linked in part to gas supply constraints. By moving to clear the legacy debts, the administration is seeking to remove one of the major obstacles that has limited investment and worsened supply instability across the industry.
The Presidency says the intervention is part of broader efforts to reform the electricity market and restore confidence in the sector, with the expectation that improved financial stability will translate into better power supply for homes and businesses.
Credit: Presidency / State House.
