Tinubu approves ₦3.3tn debt settlement plan to revamp power sector

President Bola Tinubu has authorized a ₦3.3 trillion repayment plan to address longstanding debts within Nigeria’s power sector, aiming to enhance electricity supply nationwide. The initiative focuses on settling liabilities accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme, following a thorough audit. Implementation is underway, with 15 power plants already signing settlement agreements totaling ₦2.3 trillion, and ₦501 billion raised for initial disbursements, of which ₦223 billion has been released.

According to the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, the program aims to restore confidence in the power sector by ensuring payments to gas suppliers and enabling power plants to operate reliably. This debt settlement is part of a larger reform agenda that includes improved metering and service-based tariffs.

The government intends to prioritize power delivery to businesses and industries to stimulate economic growth and job creation, with the ultimate goal of providing “more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.” President Tinubu has also announced the upcoming commencement of the next phase of reforms, known as Series II, within the current quarter.

(Source：Ripples Nigeria)