By Damilare Adeleye
President Bola Tinubu has approved a N3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.
The special adviser to the president on information and strategy, Bayo Onanuga, disclosed this in a statement on Sunday, noting that the repayment plan follows a final review of legacy debts that have burdened the power sector for over a decade.
He explained that the debts accumulated between February 2015 and March 2025.
“Following verification, N3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution,” the statement said.
Onanuga added that implementation of the plan has already begun, with 15 power plants signing settlement agreements totaling N2.3 trillion.
“The Federal Government has already raised N501 billion to fund these payments. Out of this, N223 billion has been disbursed, with further payments underway,” he said.
He emphasized that the initiative will stabilize power generation, support electricity plants, and improve the reliability of electricity supply.
“And as the sector stabilizes, more investment, more jobs, and better service will follow,” Onanuga added.
Olu Arowolo-Verheijen, special adviser on energy to President Tinubu, explained that the initiative goes beyond debt settlement, aiming to restore operational efficiency across the power sector.
“This programme is not just about settling legacy debts. It is about restoring confidence in the power sector, ensuring gas suppliers are paid, power plants can operate continuously, and the system becomes more reliable,” she said.
Arowolo-Verheijen noted that the reform agenda includes rolling out improved metering systems and introducing service-based tariffs that align electricity payments with the quality of service delivered, promoting accountability and improving consumer experience.
She also highlighted the government’s focus on ensuring stable electricity supply to critical sectors, including businesses, industries, and small and medium-sized enterprises.
“The government prioritizes power supply to businesses and SMEs because reliable electricity is essential for creating jobs, supporting livelihoods, and driving economic growth. The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
President Tinubu commended stakeholders who contributed to resolving the legacy issues in the power sector and confirmed that the next phase (Series II) of the programme will begin this quarter.