Power Crisis: Tinubu Approves ₦3.3tn to Settle 10-Year Electricity Debt

President Bola Ahmed Tinubu has formally approved a ₦3.3 trillion payment plan aimed at settling long-standing debts within the Nigerian power sector.

In a State House press release issued on Sunday, April 5, 2026, the Presidency confirmed that the resolution follows a comprehensive verification of legacy debts accumulated between February 2015 and March 2025.

This fiscal intervention, under the Presidential Power Sector Financial Reforms Programme, is designed to restore financial liquidity and operational stability across the electricity value chain.

The implementation of the recovery plan has commenced with 15 power generation companies (GenCos) signing settlement agreements totaling ₦2.3 trillion.

To fund these obligations, the Federal Government has raised ₦501 billion, of which ₦223 billion has already been disbursed to verified stakeholders.

According to the statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, these payments are intended to stabilize power generation by ensuring gas suppliers and plant operators receive outstanding arrears, thereby improving overall grid reliability.

Explaining the strategic intent of the reform, the Special Adviser on Energy to the President, Olu Verheijen, noted that the programme extends beyond mere debt servicing.

“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," she stated.

She further emphasized that the goal is to provide "more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians."

President Tinubu, in his assessment of the intervention, characterized the resolution as a critical step toward national economic revitalization.

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

He further asserted that "reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy,"reiterating his administration's prioritization of energy supply to small enterprises and heavy industries.

President Tinubu has commended the stakeholders involved in the verification exercise and confirmed that the second phase of the repayment plan, designated as Series II, is scheduled to commence within the current quarter.

The Ministry of Power and the Ministry of Finance are expected to oversee the remaining disbursements to ensure adherence to the transparency and fairness standards established during the first phase of the settlement.