Tinubu approves N4tn bond to clear power sector debts and restore investor confidence in Nigeria’s electricity market

Tinubu approves N4tn bond for power sector debts President Bola Tinubu has approved the issuance of a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers, in a decisive move to stabilise Nigeria’s electricity market and restore confidence across the energy value chain.

Also read: Tinubu moves to resolve Nigeria power sector debt crisis

Minister of Power, Adebayo Adelabu, announced the approval on Monday 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 a broader financial stabilisation plan under the Federal Government’s Renewed Hope Agenda aimed at making the power sector sustainable and commercially viable.

“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 stated.

The Tinubu approves N4tn bond for power sector debts initiative seeks to address long-standing financial bottlenecks that have hindered liquidity and investment in Nigeria’s electricity sector.

Many power firms have struggled to operate efficiently due to unpaid invoices and inadequate cost recovery.

Adelabu disclosed that tariff policy reforms have already begun to yield positive outcomes, noting improvements in supply reliability and reduced industrial energy costs.

“Industry revenue has increased by 70 per cent to ₦1.7 trillion in 2024 compared to the previous year, and the revenue is expected to exceed ₦2 trillion for 2025,” he added.

He further explained that the government’s comprehensive reforms span legislation, policy restructuring, infrastructure expansion, energy transition, and local content development.

He emphasised that clearing legacy debts would allow GenCos and gas suppliers to restore generation capacity and boost grid stability.

Highlighting ongoing projects under the Presidential Power Initiative (PPI), Adelabu revealed that Phase Zero has already delivered over 700 megawatts of new transmission capacity, while Phase One aims to add an additional 7,000 MW through contracts signed with Siemens Energy, CMEC, Elswedy Electric, and Power China.

In parallel, the Federal Government is rehabilitating National Integrated Power Projects (NIPPs) to unlock 345 MW and has successfully integrated the 700 MW Zungeru Hydropower Plant into the national grid.

Adelabu urged stakeholders to support the administration’s reforms, stressing that collaboration with the private sector and development partners will fast-track Nigeria’s goal of achieving a stable, efficient, and competitive electricity market.

Also read: President Tinubu approves National Integrated Electricity Policy, unlocks $122.2 billion investment for Nigeria’s power sector

With the Tinubu approves N4tn bond for power sector debts decision, the government aims to restore investor trust, enhance liquidity, and lay the groundwork for a sustainable power industry capable of driving industrial growth.