By Jemimah Wellington, JKNewsMedia Correspondent
OUTSTANDING DEBTS in the power sector are set for resolution following approval of a payment plan under the Presidential Power Sector Financial Reforms Programme (PPSFRP).
JKNewsMedia.com reports that the plan followed a final review of legacy debts that have affected the sector for more than a decade, with liabilities accumulated between February 2015 and March 2025.
Following verification, N3.3 trillion has been agreed as full and final settlement to ensure a fair and transparent resolution.
Implementation has commenced, with 15 power plants signing settlement agreements valued at N2.3 trillion.
The Federal Government (FG) has raised N501 billion to fund the payments, out of which N223 billion has been disbursed, while further payments continue.
Olu Arowolo Verheijen, Special Adviser on Energy to the President, said the programme is aimed at restoring confidence across the power sector.
“This programme is not just about settling legacy debts. It is about restoring confidence across the power sector ensuring gas suppliers are paid, power plants can keep running, and the system begins to work more reliably,” she said.
She added that the reforms include improved metering and service-based tariffs linked to the quality of electricity supplied.
“It is part of a broader set of reforms already underway including better metering and service-based tariffs that link what you pay to the quality of electricity you receive.
“The government is also prioritising power supply to businesses, industries, and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods, and growing the economy.
“The goal is simple more reliable power for homes, stronger support for businesses, and a system that works better for all Nigerians,” she added.
President Tinubu commended stakeholders who supported efforts to address the legacy issues in the sector and confirmed that the next phase, Series II, will begin this quarter.
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