President Bola Tinubu has approved a comprehensive ₦3.3 trillion payment plan aimed at liquidating decade-long legacy debts within the Nigerian electricity supply industry. The move, announced on Sunday, is designed to resolve the financial paralysis that has hindered stable power generation and discouraged critical investment in the energy value chain for over ten years.
The settlement covers verified debts accumulated between February 2015 and March 2025. According to the State House, implementation has already commenced with 15 power generation companies signing formal settlement agreements worth ₦2.3 trillion. To kickstart the process, the Federal Government has raised ₦501 billion, with ₦223 billion already disbursed to key stakeholders.
Special Adviser to the President on Energy, Olu Arowolo-Verheijen, emphasised that the intervention is a strategic reset for the sector rather than a mere bailout. She noted that the programme is focused on restoring confidence across the power sector by ensuring that gas suppliers are paid and power plants can maintain consistent operations without the burden of historical arrears.
The Presidency maintains that this financial injection will lead to immediate improvements in grid stability and electricity reliability for Nigerian households. Officials stated that the move is part of a broader reform package that includes service-based tariffs and aggressive metering programmes to ensure consumers only pay for the energy they consume.
Industry experts have long cited the lack of liquidity as the primary cause of frequent system collapses and the inability of Generation Companies to meet their obligations to gas producers. By clearing these "legacy" encumbrances, the administration aims to create a "bankable" market that can attract the private capital necessary for infrastructure expansion.
President Tinubu commended the stakeholders involved in the verification process and confirmed that "Series II" of the repayment plan is scheduled to begin this quarter. The administration’s ultimate goal remains the prioritisation of power supply to industrial hubs and small enterprises to stimulate economic growth and job creation across the federation.