In a landmark move to stabilize Nigeria’s volatile energy sector, President Bola Tinubu has approved a comprehensive ₦3.3 trillion payment plan to settle legacy debts that have crippled the electricity value chain for over a decade.
The repayment strategy, part of the Presidential Power Sector Financial Reforms Programme, is based on a rigorous verification of debts accumulated between February 2015 and March 2025. By clearing these financial bottlenecks, the administration aims to restore investor confidence and ensure a consistent flow of electricity to Nigerian homes and industries.
Immediate Liquidity Injection
Implementation of the recovery plan is already in motion. So far, 15 power plants have signed formal settlement agreements totaling ₦2.3 trillion. To kickstart the process, the Federal Government has raised ₦501 billion, with ₦223 billion already disbursed to key stakeholders in the power generation and gas supply sectors.
Special Adviser on Energy to the President, Olu Arowolo-Verheijen, emphasized that the initiative is the cornerstone of a much larger structural overhaul.
“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 goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
A Shift Toward Accountability
The reform package extends beyond debt repayment. According to the Presidency, the plan is integrated with service-based tariffs and improved metering, ensuring that consumer charges are directly linked to the quality and duration of electricity received.
Arowolo-Verheijen further noted that the administration is prioritizing supply to small enterprises and industries, identifying reliable energy as the primary catalyst for job creation and national economic growth.
President Tinubu has commended the stakeholders involved in resolving these long-standing issues and confirmed that the next phase (Series II) of the financial reform is scheduled to commence within the current quarter. With the injection of liquidity into the power value chain, the government expects an immediate improvement in generation stability and service reliability across the federation.
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