President Bola Tinubu has given the green light for a substantial payment plan to resolve the lingering debts that have plagued Nigeria’s power sector for over a decade. Bayo Onanuga, the Presidential spokesman, revealed that the debt repayment plan was the result of a thorough review of the legacy debts, which accumulated between February 2015 and March 2025.
The agreed — upon amount of ₦3. 3 trillion is intended to be a full and final settlement, ensuring a transparent resolution of the long-standing issues. Implementation of the plan has commenced, with 15 power plants having signed settlement agreements totaling ₦2.
3 trillion. The Federal Government has already allocated ₦501 billion to fund these payments, with ₦223 billion having been disbursed so far, and further payments are in progress.
The stabilized power value chain is expected to lead to more stable power generation and improved electricity reliability. Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, emphasized that the program extends beyond debt settlement, aiming to restore confidence across the power sector. This includes ensuring payments to gas suppliers, maintaining the operation of power plants, and enhancing the overall reliability of the system.
The government is also focusing on reforms such as better metering and service — based tariffs, which link payment to the quality of electricity received. Additionally, there is a priority on supplying power to businesses, industries, and small enterprises, as reliable electricity is crucial for job creation, supporting livelihoods, and economic growth. President Tinubu has commended all stakeholders involved in resolving the power sector’s legacy issues and has confirmed that the next phase (Series II) of the program will commence this quarter.
The current administration has faced pressure over the power sector crisis, with the opposition, including Labour Party Presidential Candidate Peter Obi, questioning the government’s commitment to improving electricity supply. Obi, who taunted Tinubu over his failed promise to provide constant electricity within four years, highlighted the decline in power supply and the increase in tariffs since Tinubu took office. Nigeria currently has the lowest per capita electricity consumption in the world, with a consumption rate below 30% of the African average.
Source: allafrica
