Tinubu approves N3.3trn payment plan to restore reliable electricity – THIS UPDATE

President Bola Tinubu has approved the payment plan to finally settle outstanding debts under the Presidential Energy Sector Financial Reform Programme.

The debt repayment plan follows the final review of legacy debts that have plagued the energy sector for more than a decade.

The long-standing debts accumulated between February 2015 and March 2025. Following the audit, ₦3.3 trillion was agreed as a full and final settlement, ensuring a fair and transparent resolution.

Implementation has begun, with 15 power plants signing settlement agreements totaling ₦2.3 trillion. The federal government has already raised ₦501 billion to fund these payments. Of the amount, $223 billion has been disbursed, with further payments underway.

What this means for Nigerians: With payments reaching the energy value chain, production will be more stable. With support for power plants, the reliability of electricity will improve.

And as the sector stabilizes, more investment, more jobs and better services will follow.

“This program is not just about paying off old debts. It’s about restoring confidence in the energy sector by ensuring that gas suppliers get paid, power plants can continue to operate and the system starts to operate more reliably,” explained Olu Arowolo-Verheijen, President Tinubu’s special advisor on energy.

“It’s 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 prioritizing the supply of electricity to businesses, industries and small businesses, because reliable electricity is key to creating jobs, supporting livelihoods and growing the economy.

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

President Tinubu commended all stakeholders who supported efforts to resolve inherited problems in the power sector. He also confirmed that the next phase (Series II) will begin this quarter.

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