Tinubu greenlights ₦3.3 trillion blueprint to revamp stable power supply

President Bola Tinubu has given the green light to a payment plan aimed at settling the outstanding debts under the Presidential Power Sector Financial Reforms Programme, bringing an end to a long-standing issue that has plagued the power sector for over a decade.

n

The debt repayment plan was formulated after a thorough review of the legacy debts that accumulated between February 2015 and March 2025, according to a statement released by presidential spokesman Bayo Onanuga.

n

Following a verification process, it has been agreed that ₦3.3 trillion will be paid as a full and final settlement, ensuring a fair and transparent resolution to the issue.

n

The implementation of the plan is already underway, with 15 power plants signing settlement agreements totaling ₦2.3 trillion, and the Federal Government has raised ₦501 billion to fund these payments.

n

So far, ₦223 billion has been disbursed, with further payments in progress, which will have a positive impact on the power value chain, leading to more stable generation and improved electricity reliability.

n

As the power sector stabilizes, it is expected that more investment, jobs, and better services will follow, according to the statement.

n

Olu Arowolo-Verheijen, Special Adviser on Energy to President Tinubu, explained that the programme is not only about settling legacy debts but also about restoring confidence across the power sector.

n

The programme is part of a broader set of reforms already underway, including better metering and service-based tariffs that link payments to the quality of electricity received.

n

The government is prioritizing power supply to businesses, industries, and small enterprises, as reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.

n

The ultimate goal of the programme is to provide more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians, according to Arowolo-Verheijen.

n

President Tinubu has commended all stakeholders who supported efforts to resolve the legacy issues in the power sector and has confirmed that the next phase, Series II, will begin this quarter.