President Bola Ahmed Tinubu has approved a payment plan to clear N3.3 trillion owed within Nigeria’s power sector under a new financial reform programme. The announcement was made by presidential spokesman Bayo Onanuga, who said the move follows a final review of long-standing debts accumulated over a ten-year period.
The debt settlement comes amid concerns raised by the Association of Power Generation Companies that gas suppliers could halt supply to thermal plants due to unpaid obligations. Officials say the verified N3.3 trillion represents a full and final agreement, with efforts already underway to resolve the issue.
According to the presidency, 15 power plants have signed settlement agreements valued at about N2.3 trillion. The Federal Government has so far raised over N500 billion, with more than N200 billion already disbursed, as payments begin to flow across the electricity value chain.
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The government says the initiative is expected to stabilise power generation, improve electricity supply, and boost investor confidence. Energy adviser Olu Arowolo-Verheijen added that the reform will also support gas suppliers, strengthen infrastructure, and drive economic growth through more reliable power delivery.
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