President Bola Tinubu has approved a ₦4 trillion bond to pay off verified debts owed to power generation companies and gas suppliers, as part of the Federal Government’s drive to stabilise Nigeria’s electricity industry and attract new investment.
Minister of Power Adebayo Adelabu made this known at the “Uninterrupted Power: The Industrial Imperative” forum organised by the Nigeria Economic Summit Group in Abuja. He said the debt settlement is a key element of a wider financial recovery plan designed to restore confidence and liquidity within the power sector.
According to Adelabu, the initiative aligns with the government’s Renewed Hope Agenda, which aims to create a commercially viable and sustainable electricity market. He added that a new subsidy framework is being developed to protect low-income consumers while transitioning toward full market-based pricing.
Ongoing Sector Reforms
Adelabu highlighted that the government’s reforms—covering legislation, infrastructure, energy transition, and policy updates—are already showing progress. He explained that the recent tariff restructuring, which introduced cost-reflective rates for specific consumer classes, has improved power supply consistency and reduced industrial energy costs.
He noted that sector revenue grew by 70% to ₦1.7 trillion in 2024 and is expected to exceed ₦2 trillion by the end of 2025, showing positive momentum toward market stability.
Expanding Power Infrastructure
The minister also gave updates on ongoing projects under the Presidential Power Initiative (PPI). He stated that phase zero of the programme had already delivered over 700 megawatts in additional transmission capacity, improving grid stability and reliability.
Phase one, which involves collaboration with Siemens Energy, CMEC, Elswedy Electric, and Power China, is expected to add 7,000MW of new operational capacity once funding is finalised.
Adelabu added that the government is rehabilitating National Integrated Power Project (NIPP) plants to recover 345MW of capacity, while the 700MW Zungeru Hydropower Plant has been successfully connected to the national grid.
Boosting Investor Confidence
Unpaid debts to GenCos and gas suppliers have long weakened operations and discouraged investment in the sector. The bond approval, according to Adelabu, will help clear these obligations and strengthen the overall financial health of the electricity industry.
He called for stronger collaboration between the government, private sector, and development partners to ensure sustainable progress.
With this funding move and continued infrastructure upgrades, the government hopes to build a more stable, reliable, and investor-friendly power sector capable of supporting Nigeria’s industrial growth.
