Power Minister, Adelabu
President Bola Tinubu has authorized the issuance of a N4 trillion bond aimed at clearing verified debts owed to power generation companies (GenCos) and gas suppliers, a move designed to stabilise Nigeria’s electricity sector and restore investor confidence.
Minister of Power, Adebayo Adelabu, announced this during the Expert Forum on ‘Uninterrupted Power:
The Industrial Imperative’ held in Abuja by the Nigeria Economic Summit Group. He outlined ongoing reforms under the Federal Government’s Renewed Hope Agenda, targeting a sustainable and commercially viable power industry.
Adelabu explained that the bond is part of a comprehensive financial stabilisation strategy to address longstanding liabilities that have constrained investment and liquidity throughout the power value chain.
“To stabilise the market, Mr. President has approved a N4 trillion bond to clear verified debts owed to GenCos and gas suppliers. Alongside this, we are developing a targeted subsidy framework to protect vulnerable households and pave the way for full commercialisation and a viable industry,” he said.
The minister highlighted a multi-faceted approach to reforming the sector, covering legislation, policy changes, infrastructure development, energy transition, and increased local content.
He also noted positive outcomes from tariff policy reforms, which introduced cost-reflective tariffs for selected consumers, resulting in improved supply reliability and lower energy costs for industries.
Adelabu revealed that sector revenues rose significantly, increasing by 70 percent to N1.7 trillion in 2024 compared to the previous year, with projections to exceed N2 trillion in 2025.
The minister stressed that clearing debts would relieve GenCos and gas suppliers, whose unpaid invoices have long affected generation capacity and operational efficiency.
He further assured that infrastructure initiatives, including the Presidential Power Initiative, are focused on expanding generation and transmission nationwide.
“Under the Presidential Power Initiative Phase Zero, we enhanced transmission capacity and grid stability, adding over 700 megawatts. Phase One contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements underway. This phase aims to add 7,000 MW of operational capacity to the grid,” Adelabu said.
Generation capacity is also increasing with the rehabilitation of existing NIPP plants, unlocking about 345 MW, and the integration of the 700 MW Zungeru Hydropower Plant into the grid.
Adelabu urged stakeholders to back the Federal Government’s reforms, expressing confidence that collaboration with the private sector and development partners will accelerate Nigeria’s progress toward a stable, reliable and industrially competitive power sector.
