By Onyeanya Ebere Immaculata
President Bola Tinubu has approved a ₦4 trillion bond to offset verified debts owed to power generation companies (GenCos), and gas suppliers, in a move aimed at stabilising Nigeria’s electricity market and restoring investor confidence in the sector.
The Minister of Power, Adebayo Adelabu, disclosed this at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group in Abuja.
He said the debt repayment forms part of a comprehensive financial stabilisation plan to address legacy liabilities that have hampered investment and liquidity across the power value chain.
“To stabilise the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” Adelabu stated, adding that a targeted subsidy framework is also being developed to protect vulnerable households while advancing the full commercialisation of the power sector.
Adelabu noted that the Federal Government is implementing a holistic reform strategy under the Renewed Hope Agenda, covering legislative and policy reforms, infrastructure development, energy transition, and local content promotion to make the sector commercially viable and sustainable.
He revealed that recent tariff adjustments have improved supply reliability and operational efficiency for industries, with sectoral revenue rising by 70% to ₦1.7 trillion in 2024 and projected to exceed ₦2 trillion in 2025.
The minister explained that clearing the outstanding debts would provide critical relief to GenCos and gas suppliers whose unpaid invoices have constrained generation capacity and disrupted operations.
Highlighting progress under the Presidential Power Initiative (PPI), Adelabu said Phase Zero had already delivered over 700 megawatts of additional transmission capacity.
Under Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements in place to deliver another 7,000 MW to the national grid.
He added that efforts are ongoing to rehabilitate National Integrated Power Projects (NIPP), plants to unlock 345 MW of additional capacity, while the 700 MW Zungeru Hydropower Plant has already been successfully integrated into the grid.
Adelabu called on stakeholders and private sector partners to support the government’s reforms, expressing optimism that continued collaboration would lead to a stable, reliable, and industrially competitive electricity sector for Nigeria.
