By Damilare Adeleye
The Federal Government has completed the verification of alleged debts owed to power generation companies.
Recall that President Tinubu had held a meeting with members of the Association of Power Generation Companies, led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja last year where he assured them of his administration’s commitment to resolving the liquidity challenges in the power sector.
As at the time of the 2025 meeting, the Nigerian Bulk Electricity Trading Company (NBET)had validated ₦1.8 trillion of the debt claims.
However, Special Adviser to the President on Energy, Mrs. Olu Verheijen had cautioned that the N4trn debt figure being claimed is subject to downward revision, pending final validation.
“While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement of agreements. Only the amounts that the federal government validly owes are the things that will make it into the issuance by DMO,” she explained.
In the latest move by the Federal government to resolve the debt, President Bola Tinubu on Sunday approved a ₦3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the President noted that the debt repayment plan follows a final review of the legacy debts that have beset the power sector for over a decade.
He explained that the long-standing debts accumulated between February 2015 and March 2025.
“Following verification, ₦3.3 trillion has been agreed upon as a full and final settlement, ensuring a fair and transparent resolution,” the statement read in part.
Onanuga stated that implementation of the payment plan has already begun, with 15 power plants signing settlement agreements totaling ₦2.3 trillion.
“The Federal Government has already raised ₦501 billion to fund these payments. Of that amount, ₦223 billion has been disbursed, with further payments underway,” he added.
He further noted that these payments would stabilize power generation by supporting power plants and improving electricity reliability. “As the sector stabilizes, more investment, more jobs, and better service will follow,” the president’s spokesperson said.
On her part, the Special Adviser on Energy to President Tinubu, Olu Verheijen, emphasized that the initiative goes beyond settling legacy debts, aiming instead for broader operational efficiency across the value chain.
“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 stated.
Verheijen explained that the effort is part of a comprehensive reform agenda already being implemented by the government, which includes the rollout of improved metering systems and the introduction of service-based tariffs.
According to her, the tariff structure is designed to align electricity payments with the quality of service delivered, thereby promoting accountability and enhancing the consumer experience.
She further disclosed that the government is strategically focused on ensuring a stable electricity supply to critical sectors of the economy, particularly businesses, industries, and small and medium-sized enterprises (SMEs).
“The government is prioritizing power supply to businesses, industries, and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy. The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
The President Tinubu also commended all stakeholders who supported efforts to resolve the legacy issues in the power sector.
He also confirmed that the next phase (Series II) will commence this quarter.