Tinubu Approves N3.3tr Settlement to Resolve Power Sector Debt

President Bola Tinubu has authorised a N3.3 trillion payment plan to clear legacy debts owed to power generation companies. The approval follows detailed verification of the sector’s outstanding liabilities by his administration. The plan builds on an existing N501 billion bond. Fifteen power plants have signed settlement deals worth N2.3 trillion, with N223 billion already disbursed. Officials say these payments will stabilise generation, improve electricity reliability and encourage new investment. Olu Arowolo-Verheijen, the president’s energy adviser, added that the programme aims to restore confidence across the entire power value chain. He noted ongoing reforms such as improved metering and tariffs linked to service quality. The Association of Power Generation Companies has opposed the reduced figure, questioning the unilateral verification process. Meanwhile, former Labour Party candidate Peter Obi has criticised the administration for failing to end frequent power outages two years into the term.

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