The Nigerian government is on the brink of resolving a decade — long electricity crisis as President Bola Tinubu has approved the payment of N3.3 trillion to 15 power plants. These funds, owed from 2015 to 2016, are part of the Federal Government’s immediate steps to end the widespread electricity blackouts. The payment plan, which falls under the Presidential Power Sector Financial Reforms Programme, is a critical step towards restoring constant electricity supply across the nation.
Presidential spokesperson Bayo Onanuga announced the debt repayment plan in a statement released on Sunday. The plan, which follows a comprehensive review of the legacy debts, is aimed at providing a fair and transparent resolution. The debts, which accumulated between February 2015 and March 2025, have been verified and agreed upon as a full and final settlement.
Implementation has commenced, with 15 power plants signing settlement agreements totalling N2. 3 trillion.
So far, the Federal Government has raised N501 billion to fund these payments. Of this amount, N223 billion has been disbursed, with further payments ongoing. The financial injection is expected to stabilize power generation, leading to improved electricity reliability. As the power sector stabilizes, the government anticipates an increase in investment, job creation, and better service delivery.
President Tinubu expressed commendation for all stakeholders involved in resolving the legacy issues within the power sector. He confirmed that the next phase (Series II) of the programme will commence this quarter. Olu Arowolo-Verheijen, the Special Adviser on Energy to President Tinubu, elaborated on the programme’s broader objectives.
He emphasized the importance of restoring confidence across the power sector, ensuring timely payments to gas suppliers, and improving system reliability. The government’s focus on better metering, service-based tariffs, and prioritizing power supply to businesses, industries, and small enterprises is part of a larger strategy to foster economic growth and support livelihoods. The ultimate goal is to provide more reliable power for homes and a more efficient system for all Nigerians.
Source: allafrica
