Power Shake-Up: Bola Ahmed Tinubu Approves ₦3.3 Trillion To End Nigeria’s Electricity Woes

President Bola Ahmed Tinubu has approved a comprehensive repayment plan to address longstanding debts within Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme, in a move aimed at stabilising electricity supply and restoring confidence across the industry.

According to credible reports, the decision followed a final review of legacy liabilities that have burdened the sector for over a decade. The debts, accumulated between February 2015 and March 2025, have been verified, with a total of ₦3.3 trillion agreed upon as a full and final settlement.

Implementation of the repayment plan is already in progress, with 15 power generation companies having signed settlement agreements valued at ₦2.3 trillion. The Federal Government has so far raised ₦501 billion to initiate the process, out of which ₦223 billion has been disbursed, while additional payments are ongoing.

The development is expected to significantly improve electricity supply nationwide, as clearing debts across the power value chain is projected to stabilise generation capacity and enhance the reliability of power for households and businesses.

Experts note that the initiative could also resolve financial constraints within the sector, attract new investments, create employment opportunities, and improve service delivery over time.

Speaking on the development, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, stated that the programme extends beyond debt settlement, emphasising that it is designed to rebuild trust within the sector, ensure timely payments to gas suppliers, and enable power plants to operate more efficiently.

She added that the initiative forms part of broader reforms, including improved metering and the introduction of service-based tariffs aligned with the quality of electricity supply. The government is also prioritising power delivery to businesses, industries, and small enterprises to support economic growth and job creation.

She further explained that the overarching objective is to deliver more reliable electricity to homes, strengthen support for businesses, and establish a more efficient power system for Nigerians. President Tinubu also commended stakeholders involved in resolving the sector’s legacy challenges and confirmed that the next phase of the programme, known as Series II, will commence later this quarter.