06, April 2026
President Bola Tinubu has given the green light for a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector.
The news was shared in a statement on Sunday by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
This move is anticipated to enhance electricity supply and restore investor confidence in the sector.
Debt Details
– *Amount:* ₦3.3 trillion
– *Period:* February 2015 to March 2025 (10 years)
– *Programme:* Presidential Power Sector Financial Reforms Programme
– *Status:* Full and final settlement agreed upon after verification
Implementation Progress
– *Agreements Signed:* 15 power generation companies (₦2.3 trillion)
– *Funds Raised:* ₦501 billion
– *Disbursed:* ₦223 billion
– *Next Phase (Series II):* Expected to commence within the current quarter
Significance of the Programme
Olu Arowolo-Verheijen, Special Adviser on Energy to the President, highlighted that the initiative goes beyond debt clearance:
– *Restoring Confidence:* Ensuring gas suppliers are paid and power plants operate reliably
– *Reforms:* Improved metering, service-based tariffs, prioritising power supply to businesses and industries
– *Goal:* More reliable power for homes, stronger support for businesses, and a better-functioning system
Impact of Power Shortages
– *Annual Losses:* $26 billion (Nigeria’s economy)
– *Business Costs:* $22 billion spent annually on off-grid fuel for generators
– *Grid Issues:* Frequent collapses, low generation, persistent outages
The presidency believes settling these debts will enhance liquidity across the power value chain, leading to more stable electricity generation and improved service delivery.
President Tinubu commended stakeholders for their roles in resolving the issues
