President Bola Tinubu has approved a ₦3.3 trillion payment plan to address long-standing debts in Nigeria’s power sector, in a move aimed at improving the country’s electricity supply.
The initiative targets legacy obligations accrued between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme, according to official reports.
In a statement, presidential spokesperson Bayo Onanuga confirmed that implementation of the repayment plan is already underway. He disclosed that 15 power generation companies have signed settlement agreements amounting to ₦2.3 trillion.
Also commenting, the Special Adviser on Energy to the President, Olu Verheijen, said the settlement is expected to strengthen the power value chain and enhance electricity reliability across the country.
The Nigerian power sector has long struggled with liquidity challenges and debt overhang, issues analysts say have hindered consistent electricity generation and distribution. Officials say the new repayment framework is designed to restore investor confidence and create a more sustainable energy market.