Tinubu Approves N3.3Trn Payment Plan To Restore Reliable Electricity
President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing legacy
debts in Nigeria’s power sector, in a major intervention aimed at stabilising the industry and improving
electricity supply nationwide.
The approval was announced in a statement issued on Sunday, April 5, 2026, by the Special Adviser to
the President on Information and Strategy, Bayo Onanuga.
According to the statement, the ₦3.3 trillion represents a full and final settlement of verified legacy
debts accumulated under the Presidential Power Sector Financial Reforms Programme over a 10-year
period, spanning February 2015 to March 2025.
The debts involve obligations to power generation companies (GenCos), gas suppliers, and other
stakeholders in the sector.
Following a comprehensive verification exercise, the government agreed on the ₦3.3 trillion figure to
ensure a fair and transparent resolution.
Implementation of the payment plan has already commenced. As of April 5, 2026, 15 power plants have
signed settlement agreements totalling ₦2.3 trillion.
The Federal Government has raised ₦501 billion to fund the payments, out of which ₦223 billion has
already been disbursed, with further tranches scheduled to follow.
The Presidency stated that the debt settlement is expected to restore investor confidence, enable gas
suppliers to resume reliable supply, allow power plants to operate more efficiently, and ultimately lead
to more stable and improved electricity supply across the country.
This intervention forms part of broader reforms in the power sector aimed at addressing structural
challenges that have persisted for over a decade.
By Oyinkansola Shittu.
