AWC Energy Desk
April 5, 2026
ABUJA — In a landmark move to resolve the decade-long liquidity crisis in the Nigerian Electricity Supply Industry (NESI), President Bola Ahmed Tinubu has approved a comprehensive ₦3.3 trillion payment plan. The initiative, under the Presidential Power Sector Financial Reforms Programme, aims to settle legacy debts accumulated between February 2015 and March 2025.
Clearing the Decade-Long Debt
Following a rigorous verification process, the Federal Government has designated ₦3.3 trillion as the full and final settlement for outstanding liabilities that have hampered the sector’s growth.
Implementation is already in high gear:
Settlement Agreements: 15 power plants have already signed agreements totaling ₦2.3 trillion.
Funding & Disbursement: The Federal Government has raised ₦501 billion to kickstart the process.
Immediate Action: ₦223 billion has already been disbursed to stakeholders, with further payments currently underway.
Impact on Nigerians: A More Reliable Grid
The Presidency emphasizes that this is not merely a financial transaction but a structural reset of the energy value chain. By injecting liquidity:
1. Stable Generation: Gas suppliers will be paid, ensuring power plants have the fuel necessary to maintain constant output.
2. Increased Investment: A debt-free balance sheet will restore investor confidence, leading to infrastructure upgrades and job creation.
3. Service-Based Efficiency: The reforms link directly to improved metering and tariffs that ensure Nigerians pay for the actual quality of electricity received.
“This programme is about restoring confidence. We are ensuring gas suppliers are paid and power plants can keep running so the system works reliably,” explained Olu Arowolo-Verheijen, Special Adviser on Energy to the President. “The goal is simple: more reliable power for homes, stronger support for businesses, and a system that works for all Nigerians.”
Prioritizing Economic Growth
A key pillar of this reform is the prioritization of power supply to businesses, industries, and small enterprises. The administration views reliable electricity as the primary catalyst for job creation and economic expansion.
President Tinubu has commended all stakeholders involved in resolving these complex legacy issues. He further confirmed that Series II of the payment and reform phase is scheduled to commence within this current quarter.
