President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle outstanding debts owed to electricity generation companies (Gencos) under the Presidential Power Sector Financial Reforms Programme, in a major move to restore stability and reliability to Nigeria’s power sector.
The approval follows a comprehensive review of legacy debts that have plagued the electricity value chain for over a decade, affecting generation, gas supply, and overall system performance.
The debts, accumulated between February 2015 and March 2025, were thoroughly verified, with ₦3.3 trillion agreed upon as full and final settlement to ensure a fair, transparent, and sustainable resolution.
Implementation of the repayment programme has already commenced, with 15 power plants signing settlement agreements worth ₦2.3 trillion.
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The Federal Government has so far raised ₦501 billion to support the payments, out of which ₦223 billion has been disbursed, while additional payments are ongoing.
The intervention is expected to significantly improve electricity generation and supply across the country by strengthening the entire power value chain.Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is designed to rebuild confidence in the power sector and ensure seamless operations.
“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 explained that the initiative is part of broader reforms already being implemented, including improved metering and service-based tariffs that link electricity payments to quality of service.
According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises to drive economic growth, job creation, and productivity.
“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 across the power sector for supporting efforts to resolve long-standing legacy issues and confirmed that the next phase of the programme (Series II) will commence within the current quarter.
The development is expected to unlock new investments in the electricity sector, improve generation stability, and enhance reliable power supply for households and businesses nationwide.
