Jittery Tinubu and APC roll out N3.3tn bailout to stabilise Nigeria’s struggling electricity sector

 

President Bola Tinubu has given approval for a payment framework aimed at clearing longstanding debts in Nigeria’s electricity sector under the Presidential Power Sector Financial Reforms Programme.

The development was disclosed by presidential spokesman Bayo Onanuga, who said the decision followed a comprehensive verification and final review of liabilities that have weighed on the sector for over a decade.

The debts, which accumulated between February 2015 and March 2025, have now been reconciled.

“Following verification, ₦3.3 trillion has been agreed as a full and final settlement, ensuring a fair and transparent resolution.

“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.

“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.”

Providing further insight, the Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the initiative is designed to rebuild trust within the industry.

“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,” explained “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.”

President Tinubu also praised stakeholders involved in resolving the lingering challenges in the electricity sector and confirmed that the next phase of the programme, Series II, will commence within the current quarter.