President Bola Tinubu has approved a ₦3.3 trillion payment plan to clear old debts in Nigeria’s power sector and improve the reliability of electricity supply.

According to a statement released by the special adviser to the president on information and strategy, Bayo Onanuga, the plan is part of the Presidential Power Sector Financial Reforms Programme. The debts being addressed are legacy liabilities built up over a long period, from February 2015 to March 2025.

After a final review and verification of the outstanding amounts, the government agreed that ₦3.3 trillion would be treated as a full and final settlement. To begin implementation, agreements have already been signed with 15 power plants. Together, these agreements total ₦2.3 trillion.

The government has also raised ₦501 billion to fund the payment process. Of this amount, ₦223 billion has been disbursed, with further payments already in motion.

Supporters of the initiative say the main goal is not only to settle arrears, but also to stabilise the “power value chain” so that power generation can run more smoothly. By ensuring that gas suppliers are paid and that power plants can continue operations, the sector is expected to become more reliable for users across the country.

The reforms also include broader measures such as better metering and service-based tariffs, aimed at linking what consumers pay to the quality of electricity they receive. Priority, officials say, will also be given to supplying electricity to businesses, industries, and small enterprises to support job creation and economic growth.

Tinubu has commended stakeholders involved in resolving the legacy issues, and confirmed that the next phase of the reforms—Series II—will start this quarter.