President Tinubu Approves ₦3.3 Trillion Payment Plan To Stabilize Power Supply In Nigeria

President Bola Tinubu has given the green light to a ₦3.3 trillion payment plan designed to finally settle long-standing debts in Nigeria’s power sector, a move officials say will bring much-needed stability to electricity supply across the country.

The approval follows a comprehensive verification of legacy debts that have plagued the sector for over a decade. The debts accumulated between February 2015 and March 2025. After detailed review, ₦3.3 trillion was agreed upon as the full and final settlement amount.

The announcement was made in a statement issued on Sunday by Bayo Onanuga, Special Adviser to the President on Information and Strategy.

President Tinubu has commended all stakeholders involved in resolving the legacy issues and has directed that the next phase of the programme (Series II) commence this quarter.

“Implementation of the Presidential Power Sector Financial Reforms Programme has already begun. Fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the initiative, with ₦223 billion already disbursed and additional payments in progress.”

Special Adviser on Energy to President Tinubu, Olu Arowolo-Verheijen, described the programme as a turning point.

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.

She added that the debt resolution is part of wider ongoing reforms, including improved metering and the introduction of service-based tariffs that tie electricity bills to the quality of power received.

“The government is also prioritising power supply to businesses, industries, and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,” Arowolo-Verheijen explained.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”

Officials say the cash injection into the power value chain will lead to more stable electricity generation and improved reliability for millions of Nigerians. With power plants now better supported, the government expects increased investment, job creation, and enhanced service delivery in the sector.