President Bola Ahmed Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers, as part of his administration’s sweeping efforts to stabilise Nigeria’s electricity market and restore investor confidence in the energy sector.
The Minister of Power, Adebayo Adelabu, announced the development in Abuja at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group (NESG).
Adelabu explained that the bond forms a key component of the Federal Government’s Renewed Hope financial stabilisation plan aimed at resolving long-standing liquidity challenges that have constrained growth 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,” the minister disclosed. “Alongside this, a targeted subsidy framework is being developed to protect vulnerable households while setting a path for full commercialisation of the power industry.”
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According to him, the initiative is part of a wider strategy covering legislation, policy reforms, infrastructure expansion, energy transition, and local content promotion—all designed to create a sustainable, efficient, and investment-friendly power sector.
Adelabu also revealed that ongoing tariff reforms have begun yielding positive results. He said the introduction of cost-reflective tariffs for select consumer categories had improved supply reliability and lowered energy costs for industrial users.
“Industry revenue has increased by 70 per cent to ₦1.7 trillion in 2024 compared to the previous year,” he stated. “We expect it to exceed ₦2 trillion in 2025 as reforms continue to deepen.”
The minister emphasised that clearing outstanding debts would provide immediate relief to generation companies and gas suppliers who have struggled for years with delayed payments.
“The debt settlement will unlock liquidity, enhance generation capacity, and improve operational efficiency,” Adelabu explained. “It will also build confidence among investors and strengthen the financial stability of the electricity market.”
On infrastructure, Adelabu noted that the Federal Government is executing several strategic projects to modernise the national grid and expand power transmission capacity.
He cited the Presidential Power Initiative (PPI) as a flagship programme for boosting both generation and transmission capabilities. “Under Phase Zero of the PPI, we achieved over 700 megawatts of additional transmission capacity, improving grid stability,” he said.
For Phase One, Adelabu said contracts had been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing discussions underway. The phase is expected to add 7,000 megawatts of operational capacity to the grid.
He further disclosed that the rehabilitation of National Integrated Power Project (NIPP) plants would unlock an extra 345 MW, while the 700 MW Zungeru Hydropower Plant had already been successfully integrated into the national grid.
Adelabu urged investors and development partners to align with the government’s reform drive, saying collaboration was vital to achieving Nigeria’s industrialisation goals.
“This administration is determined to build a sustainable, commercially viable power sector capable of delivering uninterrupted electricity to homes and industries,” he said.