President Bola Tinubu has approved a N3.3 trillion payment plan to settle outstanding debts under the Presidential Power Sector Financial Reforms Programme.

The repayment plan followed a final review of legacy debts that had plagued Nigeria’s power sector for more than a decade.

This is contained in a statement by presidential spokesperson, Bayo Onanuga, on Sunday.

The debts accumulated between February 2015 and March 2025 across the power value chain.

Following verification, N3.3 trillion was agreed as full and final settlement to ensure a fair, transparent and credible resolution of the liabilities.

The presidency said implementation of the plan had commenced, with 15 power generation companies signing settlement agreements totalling N2.3 trillion so far.

The Federal Government already raised N501 billion to support the initial phase of the payments under the programme.

Out of the amount raised, N223 billion has been disbursed to beneficiaries, while further payments are currently underway.

The presidency said the intervention would improve liquidity across the power value chain and support more stable electricity generation nationwide.

It added that with improved funding, power plants would sustain operations, leading to enhanced reliability of electricity supply to homes and businesses.

Mr Inanuga noted that the reforms would also boost investor confidence, attract new investments, and create jobs across the sector.

The Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme was critical to restoring confidence in the power sector.

“This programme is not just about settling legacy debts; it is about restoring confidence across the power sector and ensuring the system works more reliably.”

She explained that the initiative would ensure gas suppliers are paid and enable power plants to operate efficiently and sustainably.

Ms Arowolo-Verheijen said the reforms form part of broader efforts, including improved metering and service-based tariffs linked to electricity supply quality.

“It is part of wider reforms, including better metering and tariffs tied to service delivery, to improve efficiency and accountability,” she said.

She added that the government was prioritising power supply to industries, businesses, and small enterprises to drive economic growth and job creation.

According to her, the overall objective is to deliver more reliable power to households and strengthen support for businesses nationwide.

“The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she said.

Mr Tinubu commended stakeholders for their support in resolving longstanding issues in the sector and advancing ongoing reforms.

He also confirmed that the next phase of the programme, known as Series II, will commence within the current quarter. 

(NAN)