PRESIDENT Bola Ahmed Tinubu has approved a N3.3 trillion plan to settle long-standing debts in Nigeria’s power sector, in a move the Federal Government says is aimed at improving electricity supply and stabilising the industry.

The decision was announced in a statement issued on Sunday, April 5, and signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy.

“President Bola Tinubu has approved the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme”.

According to the statement, the approval followed a final review of debts recorded under the Presidential Power Sector Financial Reforms Programme.

“The debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade,” the statement said.

The presidency noted that the obligations accumulated over a period from February 2015 to March 2025, adding that, “After verification, the government agreed on N3.3 trillion as the total amount to be paid to clear the debts. Implementation has begun, with 15 power plants signing settlement agreements totalling N2.3 trillion.”

To fund the payments, the Federal Government has raised N501 billion so far. Of this amount, N223 billion has already been paid, with further payments ongoing, the statement said.

The presidency also said the plan was intended to support activities across the power sector. It noted that payments to companies involved in electricity generation and gas supply are expected to help improve how the system operates.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme was aimed at restoring confidence in the sector by ensuring that key players receive the funds owed to them.

She also stated that the effort is part of wider reforms, including improvements in electricity metering and changes to tariffs to better reflect the level of service provided.

“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive”.

The statement added that the government is prioritising electricity supply for businesses, industries and small enterprises because of their role in supporting jobs and economic activity.

Tinubu also commended stakeholders involved in resolving the issues and confirmed that the next phase of the programme will begin later this quarter.

Nigeria’s power industry has faced persistent debt troubles that have weighed heavily on generation companies (GenCos) and the broader electricity value chain. Experts have previously described the debt build‑up as a major obstacle to stable electricity supply.

In early 2026, the Federal Government raised N501 billion from the domestic bond market under the Presidential Power Sector Debt Reduction Programme to begin settling arrears owed to GenCos.  This bond issuance drew strong investor interest, with full subscription from pension funds, banks and asset managers, marking a key step in addressing legacy liabilities dating back over a decade.

The N501 billion bond was part of a wider effort to manage more than N6 trillion in accumulated liabilities across the electricity sector and to rebuild confidence among power producers and gas suppliers.

Recent ICIR reports also noted that the difficult financial position of generation and gas companies had contributed to the slow pace of improvements in electricity supply and complicated quick‑fix promises from officials.