President Bola Ahmed Tinubu has approved the payment plan to finally settle the outstanding debt under the Presidential Power Sector Financial Reforms Programme.
The announcement was made via a State House Press Release on Sunday 5 April, 2026.
The Presidency through Bayo Onanuga, Special Adviser on Information and Strategy to the President, said, the “debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade”.
The debt has lingered and amassed “between February 2015 and March 2025”, the Presidency said; adding that, after all verification, a whopping amount of “₦3.3 trillion” was approved as a “full and final settlement” so as to ensure a “fair and transparent resolution”.
As implementation kicks off, settlement agreements at a total of “₦2.3 trillion” have been signed by “15” power plants.
The State House Press Release reads: “The long-standing debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.
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.
“What this means for Nigerians: With payments reaching the power value chain, generation will be more stable. With power plants supported, electricity reliability will improve.
“And as the sector stabilises, more investment, more jobs, and better service will follow.”
