Tinubu Approves ₦3.3tn Debt Settlement to Revamp Nigeria’s Power Sector
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at clearing long-standing debts in Nigeria’s power sector, in a major move to stabilise electricity supply and restore investor confidence.
The development was disclosed in a State House press release issued on April 5, 2026, by the President’s Special Adviser on Information and Strategy, Boyo Onanuga.
According to the statement, the payment plan is part of the Presidential Power Sector Financial Reforms Programme and follows a comprehensive review of legacy debts accumulated between February 2015 and March 2025.
“Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement said.
It noted that implementation has already commenced, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion.
“The Federal Government has already raised ₦501 billion to fund these payments, out of which ₦223 billion has been disbursed, with further payments underway,” it added.
The Presidency explained that the intervention is expected to improve electricity generation and reliability across the country, as power plants receive much-needed financial support.
“With payments reaching the power value chain, generation will be more stable… electricity reliability will improve,” the statement noted, adding that the reforms would attract investment, create jobs, and enhance service delivery.
Special Adviser on Energy to the President, Olu Arowolo-Verheiien said the initiative goes beyond debt settlement to restoring confidence in the sector.
“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.
She further highlighted complementary reforms, including improved metering and service-based tariffs.
“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive,” she explained.
Arowolo-Verheijen added that the government is prioritising electricity supply to businesses and industries to drive economic growth.
“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,” she said.
She emphasised that the ultimate objective is to deliver reliable electricity to Nigerians.
“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
President Tinubu also commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the reform programme will commence later this quarter.
