President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to power generation companies (GenCos) and gas suppliers, as part of a sweeping plan to stabilise Nigeria’s electricity market and restore investor confidence in the energy sector.
The Minister of Power, Adebayo Adelabu, disclosed this in Abuja at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group (NESG).
He explained that the bond approval was part of a broader financial stabilisation initiative under the Federal Government’s Renewed Hope Agenda, aimed at addressing long-standing liquidity issues that have crippled investment across the electricity value chain.
“To stabilise the market, Mr President has approved a ₦4tn bond to clear verified GenCo and gas supply debts,” Adelabu said.
He added, “Alongside this, a targeted subsidy framework is being developed to protect vulnerable households while creating a sustainable path toward full commercialisation and a viable electricity industry.”
According to the minister, the government’s comprehensive plan spans legislation, policy reform, infrastructure development, energy transition, and local content expansion, all aimed at ensuring a sustainable, efficient, and investment-friendly power sector.
Tariff Reforms Yielding Results, Says Minister
Adelabu highlighted that ongoing tariff policy reforms have begun to yield measurable results, particularly through the implementation of cost-reflective tariffs for select consumer categories.
According to him, these reforms have led to improved supply reliability and reduced energy costs for industrial consumers.
“Industry revenue has increased by 70 per cent to ₦1.7tn in 2024 compared to the previous year,” he revealed. “We expect the revenue to exceed ₦2tn in 2025 as reforms continue to take root.”
He said the improved revenue performance indicated growing efficiency and investor confidence, both of which were essential to achieving a self-sustaining electricity market.
Adelabu stressed that the debt clearance would bring much-needed relief to electricity generation companies and gas suppliers who have struggled for years under the weight of unpaid invoices.
“The debt settlement will unlock liquidity, enhance generation capacity, and improve operational efficiency,” he said.
He added that the Federal Government was committed to building a financially stable electricity market where operators could recover costs and reinvest in infrastructure to boost supply.
Speaking on infrastructure development, Adelabu said the Federal Government was implementing several strategic programmes to modernise the national grid and improve power reliability nationwide.
He pointed to the Presidential Power Initiative (PPI) as a major vehicle for expanding both transmission and generation capacity.
“Under Phase Zero of the PPI, we enhanced transmission capacity, grid stability, and overall system reliability, achieving over 700 megawatts of additional transmission capacity,” Adelabu explained.
He added that under Phase One, contracts had been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements currently underway.
“Phase One is expected to add 7,000 MW of operational capacity to the national grid,” the minister disclosed.
In addition to grid expansion, Adelabu revealed that generation capacity is being bolstered through the rehabilitation of National Integrated Power Projects (NIPP) plants, expected to unlock an additional 345 MW.
He also confirmed that the 700 MW Zungeru Hydropower Plant had been successfully integrated into the national grid, a key milestone in Nigeria’s ongoing efforts to increase renewable and stable energy supply.
The minister urged industry stakeholders, investors, and development partners to support the Federal Government’s reform agenda, noting that collaboration was critical to achieving Nigeria’s industrialisation goals.
“This administration is committed to building a power sector that is sustainable, commercially viable, and capable of supporting Nigeria’s industrial growth,” Adelabu stated.
He added that the Tinubu administration’s strategy was to “restore investor confidence, strengthen regulatory governance, and make uninterrupted power supply a reality for households and industries.”
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