By Danjuma Amodu | 5 April, 2026
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to clear longstanding debts in Nigeria’s power sector, aiming to improve electricity generation and supply. The debts, accumulated between February 2015 and March 2025, have undergone a comprehensive verification process.
Implementation is underway, with 15 power generation companies signing settlement agreements worth ₦2.3 trillion. The Federal Government has mobilized ₦501 billion, with ₦223 billion already disbursed.
The initiative is part of broader reforms, including improved metering systems and service-based tariffs, to restore trust and confidence in the power sector. This move is expected to stabilize Nigeria’s fragile power value chain, improve liquidity for generation companies, and ensure timely payments to gas suppliers.
“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 to the President on Energy.
The government expects this intervention to unlock fresh investments, enhance service delivery, and strengthen the electricity market. The initiative represents one of the most ambitious financial interventions in Nigeria’s power sector in recent years, raising hopes for reliable and sustainable electricity supply.
