Tinubu Okays Payment of 10-Year-Old N3.3trn Debt to 15 Power Plants for Restoration of Constant Electricity Nationwide

* N501bn already raised to fund payments with N223bn disbursed and further payments underway

* Says next phase payment begins this second quarter

Deji Elumoye in Abuja

The end seems to be in sight for the perennial electricity blackout nationwide as the Federal Government has taken immediate steps to pay N3.3 trillion to 15 power plants for outstanding debts owed them from 2015 to 2016.

To this end, President Bola Tinubu has okayed the payment plan to finally settle the outstanding debts under the Presidential Power Sector Financial Reforms Programme. 

Presidential spokesperson, Bayo Onanuga, in a release issued on Sunday, stated that the

debt repayment plan followed the final review of the legacy debts that have beset the power sector for more than a decade.

The long-standing debts accumulated between February 2015 and March 2025.

Following verification, N3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.

According to the statement, implementation has begun, with 15 power plants signing settlement agreements totalling N2.3 trillion.

The Federal Government has already raised N501 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. 

The president commended all stakeholders who supported efforts to resolve the legacy issues in the power sector while confirming that the next phase (Series II) will begin this quarter.

Also, the Special Adviser on Energy to President Tinubu, Olu Arowolo-Verheijen, further explained that: “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.

“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.

“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,” she added.