Electricity: Tinubu approves N3.3trn payment plan for ‘legacy debts’, stable power supply

*The Federal Government of Nigeria discloses the implementation of the payment plan to settle the outstanding ‘legacy debts’ has begun with 15 power plants signing settlement agreements totalling ₦2.3 trillion towards ‘a full and final settlement’, fair and transparent resolution of the debt overhang in the power sector of the economy

Gbenga Kayode | ConsumerConnect

As a decisive measure to guarantee stable and reliable power supply to homes, organisations and businesses in Nigeria, President Bola Ahmed Tinubu, GCFR, has approved the payment plan to settle the outstanding “legacy debts” under the Presidential Power Sector Financial Reforms Programme.

ConsumerConnect reports the country’s debt repayment plan followed the final review of the legacy debts that hitherto have beset the power sector of the Nigerian economy for over a decade.

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The Federal Government affirmed the age-old debts owed electricity providers had accumulated between February 2015 and March 2025.

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, Sunday, April 5, 2026, also stated disclosed that following the recent verification, stakeholders have on ₦3.3 trillion as “a full and final settlement” towards ensuring a fair and transparent resolution of the debt overhang in the power sector.

The statement disclosed the implementation of the payment plan had begun with 15 power plants signing settlement agreements totalling ₦2.3 trillion.

Onanuga revealed the Federal Government had already raised ₦501 billion to fund these payments. The government further explained that from the amount, N223 billion has been disbursed, with further payments underway.

The statement noted: “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.”

As the sector stabilises, more investment, more jobs, and better service will follow, the Presidential aide stated.

Expatiating on the processes involved, Mrs. Olu Arowolo-Verheijen, Special Adviser to the President on Energy, explained: “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.”

Arowolo-Verheijen said: “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 government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.

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

Meanwhile, President Tinubu has commended all power industry stakeholders, who supported efforts at resolving the legacy debt issues in the sector.

The Nigerian leader equally confirmed that the next phase (Series II) would begin Second Quarter (Q2) 2026, stated Onanuga.

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