President Bola Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector, a move the Federal Government says will improve electricity reliability across the country.

The settlement, part of the Presidential Power Sector Financial Reforms Programme, follows a final review of legacy debts accumulated between February 2015 and March 2025. Officials said the agreed sum represents a full and final resolution after verification.

Implementation of the plan has begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The government has so far raised ₦501 billion, out of which ₦223 billion has already been disbursed, while additional payments are in progress.

According to the presidency, the payments are expected to stabilise electricity generation by ensuring that power plants and gas suppliers receive overdue funds, thereby improving overall supply across the national grid.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative is aimed at restoring confidence in the power sector and ensuring more reliable operations.

“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 added that the plan forms part of broader reforms, including improved metering and service-based tariffs designed to align electricity costs with quality of service.

The government is also prioritising electricity supply to businesses and industries to support economic growth, job creation, and productivity, she said.

President Tinubu commended stakeholders involved in resolving the sector’s financial challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.