President Bola Tinubu of Nigeria has given the green light to a comprehensive payment plan aimed at resolving the long — standing debt crisis in the country’s power sector. This move follows a meticulous review of the legacy debts that have plagued the sector for over a decade. The presidential spokesman, Bayo Onanuga, disclosed that the accumulated debts spanned from February 2015 to March 2025.
The agreed — upon amount for the full and final settlement is ₦3. 3 trillion, a figure that ensures a fair and transparent resolution, according to the statement. The implementation of this plan has already commenced, with 15 power plants signing settlement agreements worth a total of ₦2.
3 trillion. The Federal Government has successfully raised ₦501 billion to fund these payments, with the disbursement of N223 billion and further payments in progress.
For Nigerians, this development heralds a more stable power generation scenario. As payments reach the power value chain, the reliability of electricity is expected to improve. The statement further noted that as the sector stabilizes, there will be increased investment, job creation, and better service quality.
Olu Arowolo — Verheijen, Special Adviser on Energy to President Tinubu, explained that the programme extends beyond debt settlement, aiming to restore confidence across the power sector. “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, “Arowolo-Verheijen stated.
The reforms underway include better metering and service — based tariffs that link payment to the quality of electricity received.
The government is also prioritizing power supply to businesses, industries, and small enterprises, as reliable electricity is crucial for job creation, supporting livelihoods, and economic growth. The ultimate goal, as emphasized by Arowolo-Verheijen, is to provide more reliable power for homes, stronger support for businesses, and a system that functions better for all Nigerians.
President Tinubu has commended all stakeholders involved in resolving the legacy issues within the power sector. He has confirmed that the next phase, Series II, will commence this quarter, marking a significant step towards a revitalized and more efficient power sector in Nigeria.
Source: allafrica
