The Federal Government has successfully completed the verification of long standing legacy debts owed to power generation companies in Nigeria. This thorough exercise, conducted under the Presidential Power Sector Financial Reforms Programme, has paved the way for a decisive intervention aimed at restoring financial health and operational stability across the electricity value chain.

President Bola Tinubu has approved a comprehensive payment plan totaling 3.3 trillion naira as a full and final settlement of the outstanding liabilities. These debts had accumulated over more than a decade, specifically from February 2015 to March 2025, and had continued to hinder investment, efficient generation, and reliable power supply to millions of Nigerians. By agreeing on this verified amount through a transparent and fair review process, the government seeks to resolve disputes, rebuild confidence among stakeholders, and create an enabling environment for sustained improvements in the sector.

Implementation of the approved plan is already underway. Fifteen power generation companies have signed settlement agreements amounting to 2.3 trillion naira. To support this effort, the Federal Government has mobilized 501 billion naira in funding so far, with 223 billion naira already disbursed and additional payments progressing steadily. This structured approach not only addresses immediate financial obligations but also signals a strong commitment to ending the persistent challenges that have plagued Nigeria’s power sector for years.

Officials anticipate that clearing these legacy debts will encourage greater private sector participation, enhance generation capacity, and ultimately lead to more stable and reliable electricity supply nationwide. The move forms a critical part of broader reforms designed to transform the power industry and deliver tangible benefits to businesses and households across the country.