President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle legacy debts in Nigeria’s power sector, in a move designed to restore reliable electricity supply nationwide.
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The announcement was made by Bayo Onanuga, Special Adviser to the President on Information and Strategy, on 5 April 2026.
The debts, which accumulated between February 2015 and March 2025, have plagued the industry for more than a decade. Following a final verification exercise, the Federal Government agreed the ₦3.3 trillion figure as a full and final settlement under the Presidential Power Sector Financial Reforms Programme.
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Implementation is already under way. Fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The government has raised ₦501 billion to fund the scheme, of which ₦223 billion has been disbursed, with further payments continuing.
Officials say the cash injection will stabilise the entire power value chain. Once generators and gas suppliers are paid, electricity generation is expected to become more consistent, improving reliability for homes and businesses.
Olu Arowolo-Verheijen, Special Adviser to the President on Energy, said the programme was “not just about settling legacy debts” but about “restoring confidence across the power sector”.
“It ensures gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she explained.
The initiative forms part of wider reforms, including improved metering and service-based tariffs that link bills to the quality of supply received.
The government is also prioritising electricity for industries and small enterprises, which it describes as critical to job creation and economic growth.
President Tinubu has thanked all stakeholders who helped resolve the long-running issues. The next phase of the programme, known as Series II, is scheduled to begin this quarter.
