…FG Begins Payouts to Boost Stable Generation, Investor Confidence
By Franklin Adole
President Bola Ahmed Tinubu has approved a N3.3 trillion payment plan aimed at clearing longstanding debts in Nigeria’s power sector and restoring reliable electricity across the country.
The approval covers liabilities accrued under the Presidential Power Sector Financial Reforms Programme, following a comprehensive review of legacy debts that have plagued the sector for over a decade.
The debts, which built up between February 2015 and March 2025, were subjected to a verification process, after which the Federal Government and stakeholders agreed on N3.3 trillion as a full and final settlement.
Implementation of the repayment plan is already underway, with 15 power generation companies signing settlement agreements worth N2.3 trillion. So far, the government has raised N501 billion to fund the initiative, with N223 billion already disbursed and additional payments in progress.
The move is expected to stabilise electricity generation by ensuring that power plants receive the funds needed to sustain operations, ultimately improving supply reliability for homes and businesses.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the initiative goes beyond debt settlement, describing it as a critical step towards rebuilding confidence in the power sector.
“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 payment plan forms part of broader reforms, including improved metering and service-based tariffs designed to align electricity costs with service delivery.
According to her, the government is also prioritising power supply to businesses, industries, and small enterprises to stimulate job creation and 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 said.
President Tinubu commended stakeholders for their roles in addressing the sector’s longstanding challenges and confirmed that the next phase of the reform programme, Series II, will commence this quarter.