Tinubu Approves N4 Trillion Bond to Clear GenCo Debts and Boost Nigeria’s Power Supply
Nigeria’s persistent power supply problems may soon be alleviated following new government interventions aimed at revitalizing the sector. Speaking at the Nigeria Energy Summit in Lagos, Minister of Power Adebayo Adelabu revealed that President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to Generation Companies (GenCos) and gas suppliers. He added that a targeted subsidy framework is being developed to protect vulnerable households while guiding the sector toward full commercialization. Adelabu said the government is deepening power sector commercialization to improve revenue, liquidity, and investor confidence. “Through tariff reforms introducing cost-reflective rates for select consumers, supply reliability has improved, industrial energy costs have decreased, and sector revenue rose by 70 per cent to ₦1.7 trillion in 2024. Revenue is projected to exceed ₦2 trillion in 2025,” he stated. The Minister highlighted that the National Electricity Regulatory Commission (NERC) and State Regulatory Commissions are working closely to monitor performance and enforce improvements across utilities. Challenges remain, including under-capitalization among several Distribution Companies (DisCos) and a heavy debt burden that has affected operational efficiency and service delivery. To address this, the government plans to introduce minimum capital adequacy requirements during license renewals to strengthen the financial stability and liquidity of the utilities. On infrastructure development, Adelabu said the Federal Government has launched programs to expand and modernize the national grid. “Under Phase Zero of the Presidential Power Initiative (PPI), transmission capacity has been enhanced, grid stability improved, and overall system reliability strengthened, achieving over 700MW of additional transmission capacity,” he added. The initiatives are aimed at creating a reliable, financially sustainable, and commercially viable power sector, positioning Nigeria for long-term energy stability.