President Bola Tinubu has approved a N4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers.
Minister of Power, Adebayo Adelabu, who made the disclosure in Abuja at the Expert Forum on ‘Uninterrupted Power: The Industrial Imperative’ organised by the Nigeria Economic Summit Group, where he outlined ongoing reforms under the Federal Government’s Renewed Hope Agenda to make the power sector sustainable and commercially viable, said the approval is part of efforts to stabilise Nigeria’s electricity market and restore confidence in the sector.
He explained that the bond approval forms part of a broader financial stabilisation plan designed to address legacy liabilities that have hindered investment and liquidity across the electricity value chain.
According to Adelabu, a targeted subsidy framework was also being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and a viable industry.
The minister said the Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the sector for “sustainability, efficiency, and growth”, spanning legislation, policy reform, infrastructure development, energy transition, and local content expansion.
He noted that the government’s tariff policy reforms have begun to yield positive results, noting that through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, adding that sector revenue had grown substantially in the last year.
“Industry revenue has increased by 70 per cent to N1.7 trillion in 2024 compared to the previous year, and the revenue is expected to exceed N2 trillion for 2025.”
Adelabu pointed out that the debt clearance would provide relief to GenCos and gas suppliers whose unpaid invoices have long crippled generation capacity and operational efficiency.
He further assured stakeholders that ongoing efforts in infrastructure development, including the Presidential Power Initiative, are targeted at expanding generation and transmission capacity across the country.
The minister He urged participants to support the Federal Government’s ongoing reforms, expressing optimism that collaboration with the private sector and development partners will accelerate Nigeria’s journey toward a stable, reliable, and industrially competitive power sector.
