President Bola Tinubu has approved a N3.3 trillion payment plan to settle debts in the power sector.
The approval was announced on Sunday in a statement issued by his Special Adviser on Information and Strategy Bayo Onanuga.
The statement said the payment plan is part of the Presidential Power Sector Financial Reforms Programme and follows a review of debts in the sector.
According to the statement, the debts accumulated between February 2015 and March 2025.
It stated that N3.3 trillion was agreed upon as the total amount for settlement after verification.
The statement added that implementation has started, with 15 power plants signing agreements worth N2.3 trillion.
It stated that the Federal Government allocated N501 billion for the payments, with N223 billion already disbursed.
Special Adviser on Energy to the president Olu Arowolo-Verheijen said the programme is aimed at improving operations in the sector.
“This programme is not just about settling debts. It is about ensuring gas suppliers are paid and power plants can continue to operate,” she said.
She added that the government is working on other reforms, including metering and tariffs linked to electricity supply.
The statement said the government is also focusing on power supply to businesses and industries.
It added that the next phase of the programme will begin this quarter.
