President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power and gas companies.
The move aims to stabilize Nigeria’s electricity market and boost investor confidence.
President Bola Tinubu has approved a ₦4 trillion bond to settle verified debts owed to electricity generation companies and gas suppliers. The decision is part of a wider plan to stabilize Nigeria’s power sector and restore investor confidence.
The Minister of Power, Adebayo Adelabu, made this known on Monday during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organized by the Nigeria Economic Summit Group in Abuja. He said the initiative forms part of the Federal Government’s financial stabilization plan aimed at clearing long-standing liabilities that have weakened investment and liquidity across the electricity industry.
“To stabilize the market, Mr President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” Adelabu announced. “Alongside this, a targeted subsidy framework is being developed to protect vulnerable households while ensuring a sustainable path toward full commercialization.”
According to him, the government is adopting a multi-layered strategy that focuses on legislation, infrastructure, energy transition, and local content growth to reposition the sector for sustainability and efficiency.
He said recent tariff reforms are already showing results. By introducing cost-reflective tariffs for certain consumer categories, he noted, supply reliability has improved while industrial energy costs have dropped. “Industry revenue increased by about 70 percent to ₦1.7 trillion in 2024, and we expect it to surpass ₦2 trillion in 2025,” the minister said.
Adelabu explained that the debt settlement would bring relief to generation companies and gas suppliers, many of whom have struggled with unpaid invoices that limited their capacity to produce and distribute power effectively.
He also highlighted progress in infrastructure projects, including the Presidential Power Initiative, designed to boost generation and transmission capacity nationwide. “Under phase zero of the initiative, over 700 megawatts of additional transmission capacity have been achieved,” he revealed. “Phase one, which involves firms like Siemens Energy, CMEC, Elswedy Electric, and Power China, will add about 7,000 MW to the grid once financing arrangements are completed.”
The minister said existing National Integrated Power Project (NIPP) plants are being rehabilitated to recover about 345 MW, while the 700 MW Zungeru Hydropower Plant has been fully integrated into the national grid.
He urged private-sector players and development partners to continue supporting the government’s reform agenda, adding that collective commitment would help deliver a reliable, stable, and competitive electricity market capable of powering Nigeria’s industrial growth.
