₦3.3 Trillion Lifeline!” – Bola Tinubu Approves Massive Debt Deal To Revive Power Sector

Bola Tinubu has approved a comprehensive repayment plan to clear long-standing debts in Nigeria’s power sector under the Presidential Power Sector Financial Reforms Programme.

The decision follows a final assessment of legacy liabilities that have burdened the sector for over a decade.

The debts, which accumulated between February 2015 and March 2025, have now been verified, with a total of ₦3.3 trillion agreed upon as the full settlement figure.

In a statement issued on Sunday by presidential spokesperson Bayo Onanuga, it was disclosed that implementation of the repayment plan has already begun.

So far, 15 power generation companies have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to kick-start the process, with ₦223 billion already disbursed and additional payments ongoing.

The initiative is expected to improve electricity supply nationwide by clearing debts across the power value chain, thereby stabilising generation and enhancing reliability for households and businesses.

It is also projected to ease financial constraints within the sector, attract new investments, create employment opportunities, and improve service delivery over time.

Speaking on the development, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the programme is not only about settling debts but also about rebuilding confidence in the sector.

She explained that the initiative would ensure gas suppliers are paid, power plants operate more efficiently, and the overall system becomes more dependable.

Arowolo-Verheijen added that the plan is part of broader reforms, including improved metering systems and the introduction of service-based tariffs that reflect the quality of electricity supply.

She also noted that the government is prioritising power supply to businesses, industries, and small enterprises to support economic growth and job creation.

According to her, the ultimate goal is to deliver more reliable electricity to homes, strengthen businesses, and create a more efficient power system for Nigerians.

President Tinubu also commended stakeholders for their roles in addressing the sector’s long-standing challenges and announced that the next phase of the programme, known as Series II, will begin later this quarter.