Tinubu Approves ₦4 Trillion Bond to Offset GenCos Debts
By Naija Enquirer Staff
President Bola Ahmed Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers, in a bid to stabilise Nigeria’s electricity market and restore investor confidence in the sector.
The Minister of Power, Adebayo Adelabu, disclosed this in Abuja during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group (NESG). He said the bond is part of the Federal Government’s Renewed Hope Agenda aimed at building a financially sustainable and commercially viable power sector.
Debt Clearance to Restore Market Stability
According to the Minister, the bond approval is a major step in the government’s financial stabilisation plan to resolve longstanding debts that have undermined liquidity and investment across the electricity value chain.
“To stabilise the market, Mr President has approved a ₦4 trillion 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 commercialisation and a viable industry,” Adelabu said.
He explained that the Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the sector for “sustainability, efficiency, and growth”, covering legislation, policy reform, infrastructure development, energy transition, and local content expansion.
Tariff Reforms Yield Positive Results
Adelabu noted that recent tariff policy reforms have begun to deliver measurable results. Through the introduction of cost-reflective tariffs for select consumer categories, he said power supply reliability has improved while industrial energy costs have declined.
“Industry revenue has increased by 70 per cent to ₦1.7 trillion in 2024 compared to the previous year, and revenue is projected to exceed ₦2 trillion in 2025,” the Minister revealed.
He emphasised that clearing the GenCo and gas debts would relieve pressure on operators whose unpaid invoices have crippled generation capacity and operational efficiency for years.
Infrastructure Expansion and Power Projects
Highlighting ongoing infrastructure initiatives, Adelabu said the Federal Government is implementing strategic projects under the Presidential Power Initiative (PPI) to expand generation and transmission capacity nationwide.
“Under 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,” he said.
He added that Phase One of the initiative—being implemented in partnership with Siemens Energy, CMEC, Elswedy Electric, and Power China—aims to deliver an additional 7,000 MW of operational grid capacity, with financing arrangements already underway.
Boosting Generation Capacity
In parallel with grid expansion, Adelabu disclosed that efforts are ongoing to rehabilitate existing National Integrated Power Projects (NIPP) plants to unlock about 345 MW of dormant capacity. He also confirmed the successful integration of the 700 MW Zungeru Hydropower Plant into the national grid.
Call for Private Sector Collaboration
The Minister called on stakeholders and investors to support the government’s ongoing reforms, stressing that collaboration between the public and private sectors is crucial for achieving a stable, reliable, and industrially competitive electricity market.
“Our focus remains on creating a transparent and sustainable power industry that drives industrial growth and improves quality of life for Nigerians,” Adelabu stated.
