President Bola Tinubu has given anticipatory approval for a ₦4 trillion bond programme aimed at addressing longstanding debts in Nigeria’s power sector, as part of efforts to stabilise the electricity market and encourage investment. The President made the disclosure on Friday during a meeting with members of the Association of Power Generation Companies (GENCOs), led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja.
At the meeting, Tinubu appealed to the power producers to allow more time for the verification and validation of claims, assuring them that his administration is committed to resolving the liquidity challenges undermining power generation and delivery across the country.
“I accept the assets and liabilities of my predecessors, and there is no question about that,” the President said. “But that acceptance must be on credible grounds. I need to wear the audit cap of verifiability, authenticity, and ensure that this inheritance supports economic and industrial promotion.”
Special Adviser to the President on Energy, Mrs. Olu Verheijen, revealed that the ₦4 trillion bond received anticipatory presidential approval but clarified that disbursement will be based on validated claims only.
“While there is an anticipatory approval of this ₦4 trillion bond programme, it is subject to negotiations and final settlement. Only the amounts the federal government validly owes will make it into the issuance by the Debt Management Office (DMO),” Verheijen said.
She explained that the GENCOs had submitted claims totalling about ₦4 trillion from 2015 to the end of 2023, but so far, ₦1.8 trillion has been validated. The total verified exposure as of April 2025 currently stands at ₦4 trillion.
The President appealed to GENCOs and financial institutions for patience and collaboration, warning against precipitous foreclosure actions that could undermine stability in the sector.
“To our friends in the banking sector, I ask that we avoid foreclosures. Sharpen your pencils, but keep an eraser handy. Let’s persevere together,” he said, adding that electricity remains “the most important discovery of humanity in the last 1,000 years.”
Minister of Power, Chief Adebayo Adelabu, commended President Tinubu for the attention given to the sector, citing key reforms including the passage of the Electricity Act 2023 and the launch of the Integrated National Electricity Policy.
Adelabu stated that more than $2 billion in new private capital has been attracted to the sector under Tinubu’s leadership, while annual revenue has grown by 70% from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 reducing subsidy obligations by ₦700 billion.
He highlighted other milestones:
Despite these strides, the Minister warned that a liquidity crunch could derail progress. “Given the grave implications of this debt overhang, including the risk of a nationwide shutdown of generation assets, I humbly seek your immediate support for defraying these obligations,” Adelabu appealed.
Business leaders Tony Elumelu and Kola Adesina made impassioned pleas for urgent intervention to prevent further setbacks in the sector. Elumelu noted that GENCOs are under threat of foreclosure not due to inefficiency but because of unpaid government obligations.
“Mr. President, we’ve come to you as a last hope. The generating companies are heavily indebted to banks. We don’t need power to complete your transformation, we need power to enable it,” Elumelu said.
Kola Adesina echoed similar concerns, highlighting that some power plants in the Afam axis are struggling due to gas supply issues. “Liquidity is the oxygen of our business. Without urgent intervention, generation capacity will stall,” he warned.
He proposed unlocking 800 million cubic feet of gas via NLNG to supply stranded power plants.
President Tinubu assured stakeholders that the government remains committed to a market-driven electricity sector and pledged continued reforms to restore investor confidence.
He said government agencies are currently engaging audit and legal firms to scrutinise all claims to ensure that only valid debts are honoured, adding that the focus remains on building a transparent, fair, and sustainable electricity market.
The meeting was attended by Chief of Staff to the President, Femi Gbajabiamila; Coordinating Minister of the Economy and Minister of Finance, Wale Edun; Minister of Information, Mohammed Idris; and other key regulators and industry stakeholders.