KEY POINTS
- President Tinubu has approved a N3.3 trillion settlement covering legacy debts owed to 15 power plants from 2015 to 2025.
- Fifteen power plants have already signed settlement agreements totaling N2.3 trillion, with N223 billion disbursed so far.
- The government says stable power supply, more investment, and job creation will follow as payments reach the power value chain.
Nigeria’s electricity crisis may be entering a new chapter. President Bola Tinubu has approved a plan to pay N3.3 trillion in legacy debts to 15 power plants. Those debts have sat unpaid for nearly a decade and quietly strangled the country’s power supply.
Presidential spokesperson Bayo Onanuga announced the development on Sunday. He said the government finalized the payment plan under the Presidential Power Sector Financial Reforms Programme. The plan followed a review of debts accumulated between February 2015 and March 2025.
The presidency described the N3.3 trillion figure as a full and final settlement. It called the resolution fair, transparent and long overdue.
What has been paid so far
Implementation is already underway. Fifteen power plants have signed settlement agreements covering N2.3 trillion of the total obligation. The federal government has raised N501 billion to fund the payments. It has disbursed N223 billion so far, with more payments ongoing. A second series of payments is expected this quarter.
Tinubu commended stakeholders who supported efforts to resolve the crisis. His administration has called it one of the most persistent structural problems in the Nigerian power sector.
What it means for electricity supply
Special Adviser on Energy Olu Arowolo-Verheijen said the programme goes beyond debt clearance. “This is not just about settling legacy debts,” she said. “It is about restoring confidence across the power sector.”
She said gas suppliers will get paid, power plants will keep running, and the system will become more reliable. The reforms also include better metering and service-based tariffs. Consumers will pay according to the quality of electricity they actually receive.
The government is prioritizing businesses, industries and small enterprises. Reliable electricity, the presidency said, is critical to jobs 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.
