President Bola Tinubu has approved a ₦4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers as part of efforts to stabilise Nigeria’s electricity market and restore investor confidence in the sector.
The Minister of Power, Adebayo Adelabu, announced the development in Abuja during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group. He said the move aligns with the Federal Government’s Renewed Hope Agenda to make the power sector sustainable and commercially viable.
According to Adelabu, the bond approval is a key component of a broader financial stabilisation plan aimed at resolving legacy liabilities that have undermined liquidity and investment across the electricity value chain.
“To stabilise the market, Mr President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” he stated. “Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and a viable industry.”
The minister explained that the government is implementing a multi-pronged reform strategy focused on sustainability, efficiency, and growth — covering legislation, policy reforms, infrastructure development, energy transition, and local content enhancement.
Adelabu noted that recent tariff adjustments have started yielding positive outcomes. By introducing cost-reflective tariffs for select consumers, he said, the government has improved supply reliability while helping industries manage energy costs more effectively.
He further disclosed that the sector’s revenue performance has improved significantly. “Industry revenue increased by 70 per cent to ₦1.7 trillion in 2024 compared to the previous year, and it is projected to exceed ₦2 trillion in 2025,” he said.
Adelabu added that clearing the outstanding debts will provide much-needed relief to GenCos and gas suppliers, whose unpaid invoices have constrained generation capacity and disrupted operations for years.
He reaffirmed the government’s commitment to addressing infrastructure bottlenecks through ongoing projects under the Presidential Power Initiative (PPI), which aim to strengthen generation, transmission, and distribution networks nationwide.
“In Phase Zero of the Presidential Power Initiative, we improved transmission capacity, grid stability, and system reliability, adding more than 700 megawatts of transmission capacity,” he said. “Under Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements currently underway. The phase is expected to deliver an additional 7,000MW of operational capacity to the grid.”
Adelabu also revealed that generation capacity is being expanded through the rehabilitation of National Integrated Power Projects (NIPP) plants to recover about 345MW, alongside the integration of the 700MW Zungeru Hydropower Plant into the national grid.
He called on private sector players and development partners to continue supporting the government’s reforms, expressing optimism that collaborative efforts would fast-track Nigeria’s transition to a stable, reliable, and competitive power sector.
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