President Bola Tinubu has approved a ₦4 trillion bond to settle verified debts owed to power generation companies and gas suppliers, as part of measures to stabilise Nigeria’s electricity market and restore investor confidence.

Minister of Power Adebayo Adelabu announced the approval in Abuja during the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigerian Economic Summit Group.

He said the initiative is aligned with the Federal Government’s Renewed Hope Agenda and ongoing reforms to make the power sector sustainable and commercially viable.

Adelabu explained that the bond is a key component of a broader financial stabilisation plan aimed at resolving legacy liabilities that have long constrained liquidity and investment across the electricity value chain.

“To stabilise the market, Mr President has approved a N4tn 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,” he said.

He said the Federal Government is implementing a comprehensive, multi-pronged strategy to reposition the power sector for “sustainability, efficiency, and growth,” covering legislative updates, policy reforms, infrastructure upgrades, energy transition, and local content development.

Adelabu added that ongoing tariff reforms are already delivering results, explaining that the introduction of cost-reflective tariffs for select consumer categories has enhanced supply reliability and lowered energy costs for industrial users.

He disclosed that sector revenue has recorded significant growth over the past year, noting that “Industry revenue has increased by 70 per cent to N1.7tn in 2024 compared to the previous year, and the revenue is expected to exceed N2tn for 2025.”

Reaffirming the government’s commitment to a stable electricity market, Adelabu said the debt repayment would provide much-needed relief to generation companies and gas suppliers whose unpaid invoices have long undermined capacity and efficiency.

He assured stakeholders that infrastructure development projects, including the Presidential Power Initiative, are focused on expanding generation and transmission capacity nationwide.

The minister called on participants to support the Federal Government’s ongoing reforms, expressing confidence that strengthened collaboration with the private sector and development partners will fast-track Nigeria’s progress toward a stable, reliable, and industrially competitive power sector.

On infrastructure development, Adelabu noted that the Federal Government has launched targeted national programmes to accelerate the viability, expansion, and modernisation of the national grid.

“Under the phase zero of the Presidential Power Initiative, we enhanced transmission capacity, grid stability, and overall system reliability, with over 700 megawatts of additional transmission capacity already achieved. Under Presidential Power Initiative Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China. Financing arrangements are underway to support implementation. Phase one is planned to add 7000 MW of operational capacity to the grid,” he said.