By Our Reporter
President Bola Ahmed Tinubu has approved the payment plan of N3.3trn to finally settle the outstanding debts 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.
Following verification, the long-standing debts accumulated between February 2015 and March 2025, which came to ₦3.3 trillion has been agreed as a full and final settlement, thereby ensuring a fair and transparent resolution.
A statement issued on Sunday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that implementation of the repayment plan had already begun, with 15 power plants already signed settlement agreements totalling ₦2.3 trillion.
The statement further disclosed that the Federal Government had already raised ₦501 billion to fund these payments, saying that a total of N223 billion out of the amount had been disbursed, with further payments underway.
"What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve," it said.
Speaking on the development, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, affirmed that the settlement would improve electricity reliability by stabilising the power value chain.
According to her, the programme is not just about settling legacy debts, but about restoring confidence across the power sector by ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably.
"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.
Arowolo-Verheijen added that the reforms were part of broader initiatives, including better metering and service-based tariffs that linked consumer payments to the quality of electricity received.
She assured that priority would also be given to supplying electricity to businesses, industries, and small enterprises to support 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, however, commended all stakeholders involved in resolving the legacy issues and confirmed that the next phase of the reforms, Series II, would commence this quarter.
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