President Bola Tinubu has approved the issuance of a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers. The move is part of a broader effort to stabilise Nigeria’s electricity market and restore investor confidence in the power sector.
Minister of Power, Adebayo Adelabu, disclosed this in Abuja during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigerian Economic Summit Group (NESG).
Adelabu said the bond is a key component of the Federal Government’s financial stabilisation plan under the Renewed Hope Agenda, aimed at addressing legacy liabilities that have weakened liquidity and discouraged investment in the electricity value chain.
“To stabilise the market, Mr President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households while ensuring a sustainable transition toward a fully commercialised power market,” Adelabu stated.
He added that government reforms are focused on achieving sustainability, efficiency, and growth in the sector through policy reforms, infrastructure expansion, energy transition, and increased local content participation.
According to the minister, the implementation of cost-reflective tariffs for select consumer classes has already begun yielding results, improving power supply reliability and reducing energy costs for industries.
Adelabu revealed that sector revenue grew by 70 percent in 2024, reaching ₦1.7 trillion, with projections to exceed ₦2 trillion by the end of 2025.
He noted that the debt clearance initiative would offer significant relief to GenCos and gas suppliers, many of whom have struggled with unpaid invoices that stifled generation capacity and operational efficiency.
The minister also highlighted ongoing infrastructure projects, including the Presidential Power Initiative (PPI), which aims to enhance generation and transmission capacity nationwide.
“Under Phase Zero of the Presidential Power Initiative, we have achieved over 700 megawatts of additional transmission capacity. Phase One, which involves Siemens Energy, CMEC, ElSewedy Electric, and Power China, is expected to add 7,000MW to the grid,” he said.
He added that the rehabilitation of National Integrated Power Project (NIPP) plants will unlock about 345MW of additional generation, while the successful integration of the 700MW Zungeru Hydropower Plant has further boosted supply capacity.
Adelabu urged stakeholders to support the Federal Government’s reforms, expressing optimism that collaboration with the private sector and development partners will fast-track Nigeria’s progress toward a stable, reliable, and industrially competitive power industry.
