President Bola Tinubu has approved the N3.3 trillion payment plan to settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme.

In a Sunday statement signed by Bayo Onanuga, the Special Adviser to the President on Information and Strategy, the debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.

According to the statement, the long-standing debts accumulated between February 2015 and March 2025, adding that the ₦3.3 trillion has been agreed as a full and final settlement, after verification, ensuring a fair and transparent resolution.

The payments reaching the power value chain will ensure stable generation, with power plants supported, and electricity reliability will improve.

The approval will push for more investment, more jobs, and better service in the Nigerian economy.

The statement also revealed that the implementation has begun, with 15 power plants signing settlement agreements totalling ₦2.3 trillion.

The Federal Government has already raised ₦501 billion to fund these payments. Out of the amount, N223 billion has been disbursed, with further payments underway.

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The Special Adviser on Energy to President Tinubu, Olu Arowolo-Verheijen, explained that the programme is just about settling legacy debts, saying, “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.

“It is part of a broader set of reforms already underway — including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.”

Arowolo-Verheijen added, “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.

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

President Tinubu commended all stakeholders who supported efforts to resolve the legacy issues in the power sector.

He has also confirmed that the next phase (Series II) will begin this quarter.