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A N3.3 trillion payment plan to pay off outstanding debts under the Presidential Power Sector Financial Reforms Program has been authorized by President Bola Tinubu.
The repayment plan came after a final assessment of legacy debts that had afflicted Nigeria’s power industry for almost ten years.
Mr. Bayo Onanuga, the presidential spokesperson, made this announcement in a statement on Sunday.
the debts accrued throughout the power value chain between February 2015 and March 2025.
In order to guarantee a just, open, and reliable settlement of the liabilities, N3.3 trillion was agreed upon as a complete and final settlement after verification.
According to the Presidency, 15 power producing companies have already signed settlement agreements totaling N2.3 trillion as part of the plan’s implementation.
To fund the program’s first wave of payments, the Federal Government has already raised N501 billion.
Beneficiaries have received N223 billion of the funds raised, and more payments are already being made.
According to the presidency, the intervention would promote more consistent electricity generation nationally and increase liquidity throughout the power value chain.
It further stated that increased funding would enable power plants to continue operating, improving the dependability of the supply of electricity to households and businesses.
According to Onanuga, the changes would also increase investor confidence, draw in fresh capital, and generate employment throughout the industry.
Olu Arowolo-Verheijen, the President’s Special Advisor on Energy, stated that the initiative was essential to rebuilding trust in the electricity industry.
“This program is about restoring confidence across the power sector and ensuring the system works more reliably, not just about settling legacy debts.”
She clarified that the program will guarantee payment to gas providers and allow power facilities to run effectively and sustainably.
According to Arowolo-Verheijen, the changes are a part of larger initiatives, such as better metering and service-based rates connected to the quality of the electricity supply.
“It is a component of larger reforms to increase efficiency and accountability, such as improved metering and tariffs linked to service delivery.”
In order to promote economic growth and job creation, she continued, the government was giving power supply to businesses, industries, and small businesses top priority.
The overarching goal, she says, is to provide homes with more dependable power and bolster support for businesses around the country.
“The objective is straightforward: a system that works better for all Nigerians, stronger support for businesses, and more dependable power for homes,” she stated.
Tinubu praised stakeholders for helping to advance current reforms and address long-standing problems in the industry.
Additionally, he affirmed that Series II, the program’s subsequent phase, will start this quarter.
