Minister of Power, Bayo Adelabu, has announced that President Bola Tinubu has approved a N4 trillion bond to settle verified debts owed to power generation companies (GenCos) and gas suppliers, a move aimed at stabilising Nigeria’s power sector.
Adelabu made the disclosure on Monday during a session at the Nigeria Economic Summit (NES) in Abuja.
“To stabilise the market, Mr. President has approved a N4 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 viable industry.”
The minister highlighted that the government is actively deepening power sector commercialisation to enhance revenue, liquidity, and investor confidence.
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He noted that improvements in power supply reliability have resulted in lower energy costs for industries, thanks to tariff reforms that introduced cost-reflective rates for selected consumers.
According to Adelabu, the power industry recorded a 70 percent revenue increase, reaching N1.7 trillion in 2024, and is projected to surpass N2 trillion in 2025.
The minister’s announcement aligns with a previous statement by the presidency on June 3, which indicated that internal approvals were underway to resolve N2 trillion in legacy debt owed to GenCos, as part of efforts to stabilise the sector.
GenCos had earlier reported that they were owed around N4 trillion, comprising N2 trillion for 2024 and N1.9 trillion in legacy debts—by the federal government and other stakeholders for electricity generated, warning that delays in payment could disrupt their operations.
