President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear long-standing debts in Nigeria’s power sector. The move aims to stabilise electricity supply and restore confidence across the industry. The debts accumulated between February 2015 and March 2025.

The approval came under the Presidential Power Sector Financial Reforms Programme. Following a detailed review and verification, ₦3.3 trillion was agreed as a full and final settlement. Implementation has already started.

Fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The Federal Government raised ₦501 billion for the payments, out of which ₦223 billion has been disbursed so far. Further payments are underway.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed the development. He said payments reaching the power value chain would make generation more stable and improve electricity reliability.

Special Adviser on Energy, Olu Arowolo-Verheijen, added that the programme goes beyond debt settlement. “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,” he stated.

The reforms also include better metering and service-based tariffs linked to the quality of power supplied. Priority will go to businesses, industries, and small enterprises to support job creation and economic growth.

The next phase of the reforms, Series II, will begin this quarter. President Tinubu commended stakeholders for their role in resolving the decade-old legacy issues.

The plan offers hope for more stable electricity for homes and stronger support for the economy. Many Nigerians continue to suffer from frequent power outages despite past promises of improvement.