FG Approves N4 Trillion Bond To Clear Power Sector Debts, Restore Electricity Market Stability
By Naija Enquirer Staff
The Federal Government has approved the payment of over N4 trillion owed to the electricity market, marking a critical step toward stabilising Nigeria’s troubled power sector and revitalising generation and gas supply operations.
Presidency Moves To Address Industry Debt Crisis
Minister of Power, Chief Adebayo Adelabu, announced at the 20th anniversary of the Nigerian Electricity Regulatory Commission (NERC) in Abuja that President Bola Tinubu has approved a N4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers.
According to him, this financial intervention is part of wider reforms aimed at restoring liquidity, protecting vulnerable households, and achieving long-term sustainability in the sector.
“Mr President has recently approved a N4 trillion bond to clear verified GenCos and gas supply debts. Alongside this is the commercialization effort at developing a targeted subsidy framework to protect vulnerable households,” Adelabu said.
Reform Roadmap Covers DisCos, Transmission & Policy Coordination
Adelabu noted that work is ongoing to strengthen distribution companies (DisCos), update licensing capital requirements, and advance the Presidential Power Initiative with Siemens to boost generation capacity — currently sustained at an average of 5,300MW.
He further called for increased responsibility from states, emphasising a coordinated approach to electricity governance under a National Electricity Policy Co-ordination Framework intended to harmonize federal and state regulatory actions and bolster investor confidence.
“The Federal Government has provided the legal and policy framework. The states now have autonomy to act. The private sector has the capital and innovation to invest,” he stated.
NERC Highlights Industry Progress, Calls For Transmission Investment
Vice Chairman of NERC, Dr. Musiliu Oseni, said that at least 30% of electricity consumers now enjoy improved service quality compared to two decades ago, crediting regulatory interventions for saving the government trillions in subsidies.
He emphasized the urgent need for private investment in the transmission segment, announcing progress on the Transmission Infrastructure Fund (TIF) to close funding gaps.
Oseni also urged policymakers to direct a significant portion of the $2 billion at the Rural Electrification Agency toward powering industrial hubs for economic growth.
“You can power access through mini-grids but you can’t power your economy to prosperity,” he stressed.
The debt settlement approval and ongoing policy reforms signal a major shift in Nigeria’s approach to power sector recovery, aiming to unlock investment, strengthen infrastructure, and secure sustainable electricity supply nationwide.
