Tinubu approves ₦3.3 trillion power bailout to end Nigeria’s decade of darkness

Business, Politics

ABUJA, NIGERIA, April 5, 2026 (NPA) — President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan aimed at restoring reliable electricity across Nigeria. The landmark move seeks to finally settle long-standing debts under the Presidential Power Sector Financial Reforms Programme, resolving legacy issues that have crippled the sector for more than a decade.

According to Bayo Onanuga, Special Adviser to the President (Information and Strategy), today, the debts accumulated between February 2015 and March 2025. Following verification, ₦3.3 trillion was agreed as a full and final settlement, ensuring transparency and fairness.

Implementation is already underway, with 15 power plants signing settlement agreements worth ₦2.3 trillion. The Federal Government has raised ₦501 billion to fund the payments, of which ₦223 billion has been disbursed, with further payments in progress.

Officials say the bailout will stabilize power generation, improve electricity reliability, and attract new investments. “This programme is not just about settling debts. It is about restoring confidence across the power sector — ensuring gas suppliers are paid, power plants keep running, and the system works more reliably,” explained Olu Arowolo-Verheijen, Special Adviser on Energy to the President.

She added that reforms also include better metering and service-based tariffs, linking payments to electricity quality, while prioritizing supply to businesses and industries to boost jobs and economic growth.

President Tinubu commended stakeholders for supporting the resolution of legacy issues and confirmed that the next phase of the programme (Series II) will begin this quarter.