President Bola Tinubu has sanctioned a monumental N4tn bond dedicated to settling validated debts owed to power generation companies and gas suppliers. This initiative is a strategic move aimed at stabilizing Nigeria’s precarious electricity market and reinstating trust in the sector.
The Power Minister, Adebayo Adelabu, revealed this information in Abuja at the Expert Forum on ‘Uninterrupted Power: The Industrial Imperative’ organized by the Nigeria Economic Summit Group. He highlighted ongoing reforms under the Federal Government’s Renewed Hope Agenda that are designed to transform the power sector into a sustainable and commercially viable entity.
As he articulated, the bond approval is a key component of an extensive financial stabilization blueprint intended to tackle longstanding liabilities that have stymied investment and liquidity within the electricity value chain.
“To buttress market stability, Mr. President has sanctioned a N4tn bond to settle verified debts of GenCos and gas suppliers. In conjunction with this, a focused subsidy framework is being devised to shield vulnerable households and forge a sustainable path towards full commercialization and an enduring industry.”
He further delineated that the Federal Government is adopting a holistic, multi-faceted strategy to reshape the sector for sustainability, efficiency, and growth, incorporating legislative adjustments, policy reform, infrastructure enhancement, energy transition, and local content proliferation.
The minister added that the government’s tariff policy reforms are beginning to bear fruit, observing that these tariff adjustments, which facilitate cost-reflective rates for selected consumers, have bolstered supply reliability while diminishing energy expenditures for industries.
He disclosed that sector revenues have soared significantly in the past year, stating, “Industry revenue has surged by 70 percent to N1.7tn in 2024 compared to the previous year, with projections indicating revenues will surpass N2tn in 2025.”
While underscoring the government’s dedication to establishing a stable electricity market, he stressed that the debt settlement will alleviate the burdens faced by GenCos and gas suppliers whose outstanding invoices have long hindered generation capacity and operational effectiveness.
The minister also reassured stakeholders that current initiatives in infrastructure development, including the Presidential Power Initiative, are strategically designed to enhance generation and transmission capacity nationwide.
He called on participants to rally behind the Federal Government’s ongoing reforms, expressing hope that collaboration with the private sector and development partners will expedite Nigeria’s progression towards a stable, reliable, and competitively industrialized power sector.
In terms of infrastructure advancement, Adelabu elaborated that the Federal Government had launched targeted national initiatives aimed at hastening the viability, expansion, and modernization of the national grid.
