President Bola Tinubu has approved a N4 trillion bond to pay off verified debts owing to power generation companies and gas providers as part of efforts to stabilize Nigeria’s energy market and restore trust in the industry.
Adebayo Adelabu, Minister of Power, made the announcement in Abuja at the Nigeria Economic Summit Group’s Expert Forum on ‘Uninterrupted Power: The Industrial Imperative,’ where he outlined ongoing reforms under the Federal Government’s Renewed Hope Agenda to make the power sector sustainable and commercially viable.
According to him, the bond approval is part of a larger financial stabilization strategy aimed at addressing legacy obligations that have hampered investment and liquidity throughout the electrical value chain.
“To stabilize 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 commercialization and a viable industry.”
He said that the federal government is undertaking a comprehensive, multi-pronged approach to reposition the industry for “sustainability, efficiency, and growth” that includes legislation, regulatory reform, infrastructure development, energy transition, and local content expansion.
The minister also claimed that the government’s tariff policy adjustments have begun to produce beneficial outcomes, saying that by allowing cost-reflective prices for chosen consumers, supply reliability has increased while energy costs for industries have decreased.
He stated that sector income had expanded significantly in the previous year, adding, “Industry revenue has increased by 70% to N1.7 trillion in 2024 compared to the previous year, and the revenue is expected to exceed N2 trillion in 2025.”
While emphasizing the government’s commitment to preserving a stable electricity market, he stated that debt relief will benefit GenCos and gas providers, whose unpaid payments have long hampered generation capacity and operating efficiency.
The minister also informed stakeholders that ongoing infrastructure development activities, notably the Presidential Power Initiative, aim to increase generating and transmission capacity across the country.
He asked participants to support the Federal Government’s current reforms, expressing confidence that partnership with the private sector and development partners will hasten Nigeria’s transition to a stable, dependable, and industrially competitive power sector.
In terms of infrastructure development, Adelabu highlighted that the Federal Government had implemented targeted national projects to accelerate the viability, expansion, and modernization of the national grid.
“Under the phase zero of the Presidential Power Initiative, we enhanced transmission capacity, grid stability, and overall system reliability, with over 700 megawatts of additional transmission capacity already achieved.
“Under Presidential Power Initiative Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China. Financing arrangements are underway to support implementation. Phase one is planned to add 7000 MW of operational capacity to the grid,” he said.
In line with the grid expansion, Adelabu stressed that generation capacity is being extended through the rehabilitation of existing NIPP plants to unleash around 345 MW, with the successful integration of the 700 MW Zungeru Hydropower Plant into the grid.
