Lagos, Nigeria — President Bola Ahmed Tinubu has approved a comprehensive payment plan to settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme. This information was disclosed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, in a statement issued on Sunday. The announcement comes at a time when the nation is addressing a severe power supply crisis, with many regions experiencing widespread power outages.
The power sector has been burdened with debts totaling over N4 trillion, as estimated by power generating companies (GenCos). The repayment plan, which follows a thorough review of the legacy debts that have affected the sector for over a decade, will settle the debts accumulated between February 2015 and March 2025. The Federal Government has verified the amount and agreed on N3.3 trillion as a full and final settlement, aiming for a fair and transparent resolution.
Implementation of the plan has commenced, with 15 power plants signing settlement agreements totaling N2.3 trillion. The Federal Government has already raised N501 billion to fund these payments, with N223 billion disbursed and further payments in progress.
The plan’s implementation is expected to stabilize power generation, improve electricity reliability, and attract more investments. It also seeks to create jobs and enhance service quality across the power value chain. Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, explained that the programme is part of broader reforms, including better metering and service-based tariffs, aiming to ensure a reliable power supply for all Nigerians.
President Tinubu has praised all stakeholders involved in resolving the power sector’s legacy issues. He has also confirmed the initiation of the next phase (Series II) of the reforms, which is set to commence in the current quarter.
Source: allafrica
