Hope Rises as Tinubu Approves Sweeping ₦3.3Trillion Power Sector Reset to Drive Stable Electricity

In a decisive move to tackle one of Nigeria’s most persistent infrastructure challenges, Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion payment plan aimed at clearing long-standing debts in the country’s power sector and restoring reliable electricity nationwide.

The intervention, executed under the Presidential Power Sector Financial Reforms Programme, represents the most comprehensive effort in over a decade to resolve financial bottlenecks that have crippled electricity generation and supply.

The debts, accumulated between 2015 and 2025, have constrained operations across the power value chain, from gas suppliers to generation companies.

Following a detailed audit and verification process, the Federal Government has agreed on ₦3.3 trillion as a full and final settlement, signaling a commitment to transparency, accountability, and sector-wide reset.

Implementation is already underway. Fifteen power generation companies have signed settlement agreements valued at ₦2.3 trillion, marking a critical first phase of the programme.

To fund the rollout, the government has mobilized ₦501 billion, with ₦223 billion already disbursed and additional payments in progress.

This injection of liquidity is expected to immediately ease operational pressures on power plants, many of which have struggled with cash flow constraints that limit their ability to generate at optimal capacity.

The impact of the intervention is expected to ripple across the entire electricity ecosystem.

As funds reach generation companies and upstream suppliers, power plants will be better positioned to operate consistently, gas suppliers will receive overdue payments to ensure steady fuel supply, and electricity generation is expected to stabilize and gradually increase.

For households and businesses, this translates into a more dependable power supply, reducing reliance on costly alternatives and improving overall quality of life and productivity.

According to Olu Arowolo-Verheijen, Special Adviser on Energy to the President, the initiative goes beyond debt repayment.

She explained that the programme is designed to restore confidence across the power sector by ensuring that every player, from gas suppliers to power plants, can operate sustainably, laying the foundation for a more reliable system.

She added that the reform forms part of a broader transformation agenda, including improved metering systems and service-based tariffs that align electricity pricing with the quality of supply delivered.

The administration is also prioritizing electricity access for industries, manufacturers, and small businesses, recognizing that reliable power is essential for job creation, productivity, and economic growth in Nigeria.

President Tinubu has commended stakeholders across the public and private sectors for their role in advancing the reform and confirmed that the next phase of the programme, Series II—will commence within the current quarter.