President Bola Tinubu has approved a payment plan to settle the N3.3 trillion outstanding debt in the power sector under the presidential power sector financial reforms programme.
Bayo Onanuga, special adviser to the president on
information and strategy, announced the approval in a statement on Sunday.
The approval comes almost four weeks after the Association
of Power Generation Companies (APGC) said gas firms are planning to stop supply
to thermal power plants over an estimated N3.3 trillion debt owed by generation
companies (GenCos).
On February 19, APGC said the federal government owes GenCos
about N6.5 trillion.
According to Onanuga, the repayment plan followed the final
review of the legacy debts that have impacted the power sector for more than a
decade.
“The long-standing debts accumulated between February 2015
and March 2025. Following verification, ₦3.3 trillion has been agreed as a full
and final settlement, ensuring a fair and transparent resolution,” he said.
“Implementation has begun, with 15 power plants signing
settlement agreements totalling ₦2.3 trillion. The Federal Government has
already raised ₦501 billion to fund these payments. Out of the amount, N223
billion has been disbursed, with further payments underway.”
The spokesperson said generation will be more stable with
payments reaching the power value chain, and with power plants supported,
electricity reliability will improve.
Onanuga said as the power sector stabilises, more
investment, more jobs, and better service will follow.
Also, Tinubu commended all stakeholders who supported
efforts to resolve the legacy issues in the power sector.
The president also said the next phase (Series II) will
begin this quarter.
Speaking on the approval, Olu Arowolo-Verheijen, special
adviser on energy to the president, said the programme is not just about
settling legacy debts, but also about restoring confidence across the power
sector, and ensuring gas suppliers are paid.
Arowolo-Verheijen said it will ensure gas suppliers are
paid, power plants keep running, and the system begins to work more reliably.
“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 special adviser said.
“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.”
Arowolo-Verheijen said the goal of the programme is to
provide “more reliable power for homes, stronger support for businesses, and a
system that works better for all Nigerians”.
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