By ifeoma Onyekachi

President Bola Tinubu has approved a repayment plan aimed at settling long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.

The development follows a final review of legacy debts that have affected the electricity industry for over a decade, slowing investment and weakening power generation across the country.

In a statement issued by the President’s spokesman, Bayo Onanuga, the government said the debts were accumulated between February 2015 and March 2025.

According to the statement, a total of ₦3.3 trillion has been agreed upon as a full and final settlement of the outstanding obligations after verification, in what the government described as a fair and transparent resolution process.

The statement explained that implementation of the repayment plan has already begun, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to fund the payments, out of which ₦223 billion has already been disbursed, while additional payments are ongoing.

The government said the settlement of the debts would improve the entire electricity value chain, leading to more stable power generation and improved electricity supply to Nigerians.

It added that as the power sector stabilises, the country is expected to attract more investment, create more jobs, and improve electricity services nationwide.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is not only about paying old debts but also about restoring confidence in the power sector, ensuring gas suppliers are paid, power plants continue operating, and the electricity system becomes more reliable.

She also explained that the reforms are part of broader changes already ongoing in the sector, including improved metering and service-based tariffs that link electricity payments to the quality of power supply.

According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises because reliable power is essential for job creation, economic growth, and business development.

The statement further noted that President Tinubu commended stakeholders who supported efforts to resolve the long-standing issues in the power sector and confirmed that the next phase of the programme, known as Series II, will begin later this quarter.