KEY POINTS

• Tinubu approves ₦4 trillion bond for power sector debts.
• Debt clearance targets GenCos and gas suppliers to restore liquidity.
• Tariff reforms lift revenue by 70 percent to ₦1.7 trillion.

President Bola Tinubu has approved a ₦4 trillion bond to offset verified debts owed to power generation companies and gas suppliers, a step meant to stabilise Nigeria’s electricity market and revive investor confidence.

Power Minister Adebayo Adelabu disclosed the approval on Monday in Abuja at the Nigeria Economic Summit Group’s Expert Forum themed “Uninterrupted Power: The Industrial Imperative.” He said the bond forms part of a broader plan to clear long-standing liabilities that have distorted liquidity across the electricity value chain.

Debt clearance to stabilise electricity market

“To stabilise the market, Mr President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” Adelabu said. He said the government is developing a targeted subsidy framework to protect vulnerable households and steer the industry toward full commercialisation.

The minister described the initiative as part of a “multi-pronged approach” covering legislative reforms, infrastructure development, and energy transition under Tinubu’s Renewed Hope Agenda. The goal, he said, is to build a power market that is both sustainable and commercially viable.

Sector revenue up 70 percent in one year

Adelabu noted that the government’s tariff reforms have started yielding results, particularly in cost-reflective pricing for select customers, which has improved reliability and lowered industrial energy costs.

According to him, industry revenue rose 70 percent to ₦1.7 trillion in 2024 and is projected to surpass ₦2 trillion in 2025. “These reforms are unlocking liquidity and confidence,” he said, adding that the debt clearance will give GenCos and gas suppliers the financial room to expand capacity and improve performance.

Power infrastructure expansion gathers momentum

The minister said the government is focusing ongoing infrastructure projects, including the Presidential Power Initiative, on boosting generation and transmission capacity. Under Phase Zero of the initiative, the government has already added more than 700 megawatts of transmission capacity and improved grid stability.

Siemens Energy, CMEC, Elswedy Electric, and Power China have signed contracts for Phase One to add another 7,000 MW once financing is completed. Parallel projects include rehabilitation of National Integrated Power Project plants and integration of the 700 MW Zungeru Hydropower Plant into the grid.

Adelabu further urged private investors and development partners to align with the reform agenda, saying collaboration is essential to achieving a “stable, reliable, and industrially competitive” power sector.