President Bola Tinubu has approved a structured repayment plan to clear longstanding debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme. The government confirmed ₦3.3 trillion as the agreed settlement for legacy debts accumulated between 2015 and 2025, following a comprehensive verification process aimed at restoring transparency and financial stability across the value chain.
Implementation is already underway, with 15 power generation companies signing agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion so far, disbursing ₦223 billion, with further payments ongoing. The intervention is expected to stabilise electricity generation by ensuring that gas suppliers and power plants receive payments, thereby improving overall system reliability.
Officials state that the reform will boost investor confidence, support businesses, and enhance service delivery. However, industry stakeholders note that total sector liabilities may exceed ₦6.8 trillion, highlighting a gap between verified settlements and broader debt claims.
