President Bola Tinubu has approved a sweeping ₦3.3 trillion payment plan to settle the outstanding legacy debts that have crippled Nigeria's electricity sector for over a decade a move the presidency says will directly unlock more stable power supply for homes and businesses across the country.
The approval, announced Saturday from the State House, follows a final review of debts that accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
₦3.3 Trillion Agreed as Full and Final Settlement
After extensive verification, the Federal Government confirmed ₦3.3 trillion as the full and final settlement figure, designed to deliver a fair and transparent resolution to all parties across the power value chain.
Implementation is already underway. Fifteen power plants have signed settlement agreements totalling ₦2.3 trillion, with the Federal Government having raised ₦501 billion to fund the payments. Of that amount, ₦223 billion has already been disbursed, with further tranches currently in progress.
What This Means for Nigerians
According to reports seen by Visblog the government says the impact will be direct and tangible. With payments flowing to generation companies, gas suppliers, and other stakeholders, the power plants will have the financial backing needed to operate more consistently.
"With payments reaching the power value chain, generation will be more stable," the presidency stated. "With power plants supported, electricity reliability will improve."
The administration also stressed that as the sector stabilises, it is expected to attract more private investment, create jobs, and drive improvements in service delivery.
Special Adviser on Energy Speaks
Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, explained the broader strategic intent behind the settlement.
"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," she said.
She added that the debt resolution is part of a broader reform package already being rolled out, including improved metering systems and service-based tariffs a model that ties what consumers pay to the actual quality of electricity they 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," Arowolo-Verheijen said.
"The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians."
Series II Coming This Quarter
President Tinubu commended all stakeholders who worked toward resolving the long-standing crisis. He also confirmed that Series II of the Presidential Power Sector Financial Reforms Programme will launch this quarter, signalling that the current settlement is only the beginning of a longer reform roadmap.
A Decade of Debt
Nigeria's power sector has struggled with structural debt for years, stemming from a combination of below-cost tariffs, gas payment defaults, and liquidity shortfalls across the generation-to-distribution chain. Industry experts have long warned that without clearing these legacy obligations, private investors would remain reluctant to commit to the sector.
The Tinubu administration's decision to formally verify and settle the accumulated debt spanning a decade represents one of the most significant financial interventions in Nigeria's electricity sector since the 2013 privatisation.
By Elvis Onuigbo, Visblog — April 5, 2026
Source: State House, Abuja
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