Tinubu Approves N4 Trillion Bond to Settle GenCos Debts, Boost Nigeria’s Power Sector
President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to Nigeria’s power generation companies (GenCos) and gas suppliers, a move aimed at stabilising the country’s electricity market and restoring investor confidence in the sector. The announcement was made by Minister of Power, Adebayo Adelabu, during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” in Abuja, organised by the Nigeria Economic Summit Group.
According to Adelabu, the bond forms part of a broader financial stabilisation strategy designed to tackle long-standing liabilities that have hindered investment and liquidity across Nigeria’s electricity value chain. “To stabilise the market, Mr President has approved a N4tn bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation,” he said.
The minister highlighted that the Federal Government is pursuing a multi-pronged approach to make the power sector sustainable and efficient. This includes legislative reforms, policy adjustments, infrastructure development, energy transition initiatives, and local content expansion. He also noted that tariff policy reforms have begun yielding results, improving supply reliability while reducing energy costs for industrial consumers. Revenue for the sector grew 70% to N1.7 trillion in 2024 and is expected to surpass N2 trillion in 2025, signaling a positive trend.
Infrastructure development remains a core focus, with the Presidential Power Initiative (PPI) spearheading transmission and generation capacity expansion. Under Phase Zero, the government added over 700 megawatts of transmission capacity, while Phase One, in partnership with Siemens Energy, CMEC, Elswedy Electric, and Power China, aims to add 7,000 MW to the national grid. Additionally, rehabilitation of existing NIPP plants and the integration of the 700 MW Zungeru Hydropower Plant are expected to unlock further generation capacity.
Adelabu emphasised that settling GenCos’ debts will relieve operational constraints and encourage private sector participation in the electricity market. He urged stakeholders to support ongoing reforms, expressing optimism that collaboration with private investors and development partners will accelerate Nigeria’s journey toward a reliable, industrially competitive, and commercially viable power sector.
source: punch