President Bola Tinubu approves ₦3.3 trillion power sector debt settlement, unlocking improved electricity supply, investment, and economic growth in Nigeria
Tinubu Moves to End Power Crisis with ₦3.3tn Debt Settlement — What It Means for Nigerians
President Bola Tinubu has approved a sweeping payment plan to clear long-standing debts in Nigeria’s troubled power sector, marking a major step toward stabilising electricity supply across the country.
The decision follows a final review of legacy debts under the Presidential Power Sector Financial Reforms Programme — liabilities that have weighed down the industry for over a decade.
In a statement released on Sunday, April 5, 2026, presidential spokesman Bayo Onanuga confirmed that the debts, accumulated between February 2015 and March 2025, have now been verified and agreed at ₦3.3 trillion as a full and final settlement.
Implementation is already underway.
So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion, while the Federal Government has raised ₦501 billion to kick-start payments. Of that amount, ₦223 billion has already been disbursed, with further payments in progress.
The government says the ripple effects will be felt across the entire power value chain.
With funds flowing to power producers and gas suppliers, electricity generation is expected to stabilise — a move that could significantly improve reliability for homes and businesses.
Officials also project that a more stable sector will unlock fresh investments, create jobs, and enhance service delivery nationwide.
“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,” said Olu Arowolo-Verheijen, Special Adviser on Energy to the President.
She added, “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.
“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.”
President Tinubu also commended stakeholders who contributed to resolving the sector’s long-standing challenges and confirmed that the next phase of the programme (Series II) will begin later this quarter.
