President Bola Tinubu has approved a N3.3 trillion payment plan to clear legacy debts in Nigeria's power sector as part of the Presidential Power Sector Financial Reforms Programme. The approval was confirmed in a statement issued by the President's spokesperson, Bayo Onanuga, on Sunday. The plan follows a final review of long-standing financial obligations that have burdened the sector for more than a decade. The debt settlement aims to stabilise power generation and transmission operations by addressing unpaid obligations to generation companies, gas suppliers, and other critical service providers. The government hopes the intervention will restore confidence among investors and improve electricity supply across the country. Specific timelines and disbursement mechanisms for the N3.3 trillion will be disclosed by the Ministry of Power in coordination with the Nigerian Electricity Regulatory Commission.
The scale of the debt—N3.3 trillion—reflects years of systemic dysfunction in the power sector, not just financial neglect. Tinubu's approval shifts the burden to taxpayers to cover arrears accumulated under previous administrations. For Nigerians, this means another massive public expenditure on a sector that has yet to deliver consistent electricity. The real test will be whether this payment leads to measurable improvements in power supply or becomes another line item in a cycle of bailouts.
