Honorable Minister for Power
The Federal Government has approved a bond that will ease the debts owed power generation companies (GenCos) and gas suppliers. The 4 trillion naira bond is also expected to stabilise Nigeria’s electricity market and restore investor confidence in the sector.
The Minister of Power, Hon. Adebayo Adelabu revealed that the bond forms part of a comprehensive financial stabilisation plan designed to address longstanding liquidity challenges and legacy debts that have stalled growth and investment across the power value chain.
“To stabilise the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” he said.
“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.”
The Minister explained that the Federal Government’s strategy for transforming the power sector is anchored on policy reform, infrastructure development, legislation, energy transition, and local content expansion.
He noted that recent tariff reforms, which introduced cost-reflective rates for select consumers, have already begun yielding results, improving supply reliability and reducing energy costs for industries.
“Industry revenue has increased by 70 per cent to ₦1.7 trillion in 2024 compared to the previous year, and is expected to exceed ₦2 trillion in 2025,” Adelabu stated.
He added that the debt clearance initiative will provide much-needed relief to GenCos and gas suppliers, whose unpaid invoices have crippled generation capacity and weakened operational efficiency.
Adelabu also reaffirmed the government’s commitment to infrastructure expansion through initiatives like the Presidential Power Initiative (PPI), which aims to modernise and strengthen the national grid.
“Under the phase zero of the PPI, we have enhanced transmission capacity and system reliability, with over 700 megawatts of additional capacity already achieved. Phase one, which will add 7,000 MW, is underway with contracts signed with Siemens Energy, CMEC, Elswedy Electric, and Power China,” he said.
He disclosed further that the government is rehabilitating National Integrated Power Project (NIPP) plants to unlock an additional 345 MW, while the 700 MW Zungeru Hydropower Plant has been successfully integrated into the national grid.
Adelabu urged stakeholders to support the administration’s reforms, stressing that collaboration with the private sector and development partners would accelerate Nigeria’s path to a stable, reliable, and industrially competitive power sector.