Tinubu Approves ₦3.3 Trillion Debt Settlement to Finally Fix Nigeria’s Power Crisis

By Emmanuel Kwada

In a major push to rescue Nigeria’s long-troubled electricity sector, President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to clear legacy debts accumulated over more than a decade, aiming to restore reliable power supply to homes, businesses, and industries across the country.

The approval, detailed in a State House press release, follows a comprehensive verification of debts built up between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.

The ₦3.3 trillion represents a full and final settlement, designed to bring transparency and closure to the financial mess that has hampered power generation and distribution for years.

Implementation is already underway. Fifteen power plants have signed settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to support the payments, with ₦223 billion already disbursed and more tranches set to follow shortly.

Officials say the intervention will inject much-needed liquidity into the power value chain. With generators and gas suppliers paid, plants can operate more consistently, leading to improved electricity reliability nationwide.

“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” said Mrs. Olu Arowolo-Verheijen, Special Adviser to the President on Energy.

She added that the debt resolution forms part of wider ongoing reforms, including accelerated metering programmes and the introduction of service-based tariffs that tie consumers’ payments to the actual quality and quantity of electricity received.

“The government is also prioritising power supply to businesses, industries, and small enterprises — because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,” Verheijen stated.

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

President Tinubu has commended stakeholders who contributed to resolving the long-standing issues and confirmed that the next phase of the reforms (Series II) will commence this quarter.

The development comes as the administration continues aggressive efforts to address Nigeria’s chronic power challenges, which have long been identified as a major constraint on economic growth and industrialisation.

Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, signed the release.

For many Nigerians who have endured frequent blackouts and high energy costs for generators, today’s announcement signals fresh hope that the country may finally turn the corner on one of its most persistent infrastructure headaches.