Amid liquidity challenges and struggle currently plaguing the power sector and across the value chain, President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.
The debt payback plan came after the last evaluation of the legacy debts that have plagued the power industry for more than ten years, according to a statement released on Sunday by Bayo Onanuga, Special Advisor to the President on Information and Strategy.
“The long-standing debts accumulated between February 2015 and March 2025. Following verification, N3.3tn has been agreed upon as a full and final settlement, ensuring a fair and transparent resolution,” the statement said.
Onanuga revealed that 15 energy plants have signed settlement agreements totalling N2.3 trillion, marking the start of implementation. To finance these payments, the Federal Government has already raised N501 billion. N223 billion of the total has been distributed, and more payments are being made, according to Onanuga.
He claims that this will result in more stable electricity generation.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve. And as the sector stabilises, more investment, more jobs, and better service will follow,” the statement added.
“The government is also prioritising power supply to businesses, industries, and small enterprises—because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy. The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians.”
Tinubu also commended all stakeholders who supported efforts to resolve the legacy issues in the energy sector. He has also confirmed that the next phase (Series II) will begin this quarter.
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