The Presidency has clarified the approval of a ₦3.3 trillion plan by President Bola Ahmed Tinubu to settle legacy debts owed to power generation companies between 2015 and 2025.
In a statement on Thursday, presidential spokesman Bayo Onanuga said the initiative, under the Presidential Power Sector Financial Reforms Programme, is aimed at stabilising the electricity sector, with ₦223 billion already disbursed.
The clarification follows concerns by generation companies over how the debt figure was calculated. The Presidency said total claims of about ₦4.7 trillion were reviewed and reduced by 30 percent to ₦3.3 trillion after verification of valid and contract-backed obligations.
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It added that the settlement is being implemented in phases through a market-based financing framework, with multiple power plants already signing agreements, as part of broader reforms to improve liquidity, reliability, and long-term sustainability in the power sector.
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