The Federal Government has approved a ₦4 trillion bond programme to clear longstanding debts owed to power Generation Companies, GenCos, and gas suppliers, marking a major milestone in the ongoing reform of Nigeria’s electricity sector.
Mrs. Olu Verheijen, Special Adviser to the President on Energy, confirmed the initiative in Abuja, saying the move followed months of technical discussions between government officials and senior executives from the GenCos.
The debt settlement plan, she explained, represents the most significant intervention in the sector in more than a decade.
According to a statement by Senan Murray, Head of Media and Communications in Verheijen’s office, the implementation framework for the bonds was finalised at a meeting attended by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Power, Chief Bayo Adelabu, and representatives of key power stakeholders.
The meeting produced a consensus on a phased settlement strategy that balances fiscal discipline with the operational needs of the power producers.
Verheijen noted that the Tinubu administration’s goal is to shift the sector from short-term crisis management to long-term stability and investment.
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She added that government reforms now focus on upgrading the national grid, scaling embedded generation, closing metering gaps, and aligning tariffs with efficient costs to ensure a sustainable market.
“This intervention is about restoring investor confidence, improving utility performance, and creating the conditions for private capital to thrive,” she said.
Finance Minister Wale Edun described the move as a foundational reform rather than a mere liquidity fix. “We are rebuilding the fundamentals so that Nigeria’s power sector works for investors, for citizens, and for the next generation,” he said.
Private sector leaders praised the initiative. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power, said it was the first credible step in years to address the sector’s liquidity crisis.
Similarly, Kola Adesina, Group Managing Director of Sahara Power Group, hailed the plan as a “strategic reset” for Nigeria’s electricity market.
The Presidential Power Sector Debt Reduction Plan, jointly implemented by the Ministries of Finance and Power alongside the Special Adviser’s office and NBET Plc, is expected to unlock new investments and improve power reliability nationwide.
