Tinubu Releases Just 7% of ₦3.3 Trillion to Tackle Ongoing Power Crisis Affecting Millions

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to resolve long-standing debts in Nigeria’s power sector, as announced in a State House press release on April 5, 2026. The initiative, part of the Presidential Power Sector Financial Reforms Programme, targets liabilities accumulated between February 2015 and March 2025. Officials affirm that this move will stabilise electricity generation, restore investor confidence, and enhance supply nationwide.

So far, 15 power generation companies have signed settlement agreements totalling ₦2.3 trillion. The Federal Government has raised ₦501 billion to initiate the process, with ₦223 billion already disbursed. These initial payments are expected to significantly ease liquidity challenges across the electricity value chain, particularly for gas suppliers and generation companies, and to improve power reliability.

Olu Arowolo-Verheijen emphasises that the programme extends beyond debt settlement. She states it is about restoring confidence across the power sector, ensuring gas suppliers are paid, enabling power plants to operate continuously, and making the system more dependable. She further confirms that the reforms include modernising metering systems and implementing service-based tariffs aligned with electricity quality standards.

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Although ₦3.3 trillion has been approved, only ₦223 billion, less than 10%, has been disbursed thus far. This disparity raises critical concerns about the pace of implementation and the likelihood of achieving the plan’s promised impacts in the short term. Without faster, more substantial releases, immediate improvements in electricity supply will remain elusive.

The presidency has announced that a second phase (Series II) will commence later this quarter, indicating additional settlements and payments are on the horizon. The success of this initiative ultimately hinges on how rapidly the remaining funds are mobilised and distributed, and whether early payments lead to tangible improvements in electricity supply for Nigerians.

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