President Bola Tinubu has approved a ₦3.3 trillion payment plan aimed at settling long-standing debts in Nigeria’s power sector and improving electricity reliability.

The development was disclosed on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, in a statement.

According to the statement, the initiative falls under the Presidential Power Sector Financial Reforms Programme and follows a final review of legacy debts accumulated between February 2015 and March 2025.

The government said ₦3.3 trillion has been agreed upon as a full and final settlement after verification, describing the move as a step toward ensuring transparency and restoring confidence in the sector.

Implementation has already commenced, with 15 power generation companies signing settlement agreements valued at ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the payments, out of which ₦223 billion has been disbursed so far.

Officials say the intervention is expected to stabilise electricity generation by improving liquidity across the power value chain, including payments to gas suppliers and power plants.

Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme is part of broader reforms targeted at improving service delivery.

She noted that ongoing efforts include enhanced metering and service-based tariffs designed to align electricity costs with supply quality, as well as prioritising power supply to businesses and industries.

The Presidency said improved power supply would support economic growth, job creation, and better service delivery nationwide.

Tinubu also commended stakeholders involved in resolving the sector’s challenges and confirmed that the next phase of the programme is expected to commence within the current quarter.