A N3.3 trillion payment plan to clear outstanding debts under the Presidential Power Sector Financial Reforms Program has been authorized by President Bola Tinubu.
The repayment plan came after a final assessment of the legacy debts that have afflicted Nigeria’s power industry for over ten years.
Mr. Bayo Onanuga, the presidential spokesperson, made this announcement on Sunday.
The debts amassed along the power value chain between February 2015 and March 2025.
In order to guarantee a just, open, and reliable settlement of the liabilities, N3.3 trillion was agreed upon as a full and final settlement after verification.
According to the Presidency, 15 power producing businesses have already signed settlement agreements totaling N2.3 trillion, marking the start of the plan’s implementation.
To fund the program’s initial phase of payments, the Federal Government has already raised N501 billion.
Beneficiaries have received N223 billion of the funds raised, and additional payments are already being made.
According to the presidency, the intervention would assist more consistent energy generation nationally and increase liquidity throughout the power value chain.
It further stated that increased funding would enable power plants to continue operating, improving the dependability of the supply of electricity to residences and commercial buildings.
According to Onanuga, the changes would also increase investor confidence, draw in fresh capital, and generate employment opportunities throughout the industry.
Olu Arowolo-Verheijen, the President’s Special Advisor on Energy, stated that the program was essential to rebuilding trust in the electricity industry.
“This program is about restoring confidence across the power sector and ensuring the system works more reliably, not just about paying off legacy debts.”
She clarified that the program will guarantee payment to gas providers and make it possible for power plants to run effectively and sustainably.
According to Arowolo-Verheijen, the changes are a part of larger initiatives that also include better metering and service-based prices that are connected to the quality of the electricity supply.
“It is a component of broader reforms to increase efficiency and accountability, such as improved metering and tariffs linked to service delivery.”
In order to promote economic expansion and job creation, she continued, the government was giving power supply to businesses, industries, and small businesses top priority.
The overarching goal, she says, is to provide homes with more dependable power and bolster support for businesses around the country.
“The objective is straightforward: a system that functions better for all Nigerians, stronger support for businesses, and more dependable power for homes,” she stated.
Tinubu praised stakeholders for helping to advance current reforms and resolve long-standing problems in the industry.
Additionally, he affirmed that Series II, the program’s next phase, will start this quarter.
