Minister of Power, Bayo Adelabu, says President Bola Ahmed Tinubu has approved the issuance of a ₦4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers.
Gatekeepers News reports that Adelabu disclosed this on Monday at a forum during the Nigeria Economic Summit (NES) held in Abuja.
“To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” he said.
The minister noted that alongside the bond issuance, the federal government is developing a targeted subsidy framework to cushion the impact of electricity costs on vulnerable households.
Adelabu added that the administration is deepening power sector commercialisation to boost liquidity, revenue, and investor confidence. According to him, these reforms have already translated into improved power supply reliability and lower energy costs for industries, following the introduction of cost-reflective tariffs for selected consumer categories.
He revealed that industry revenue grew by 70 percent to ₦1.7 trillion in 2024 and is projected to surpass ₦2 trillion in 2025.
The minister’s remarks come months after the presidency announced that internal approvals were being finalised to address the ₦2 trillion legacy debt owed to GenCos. The companies had previously warned that the federal government and other market participants owed them over ₦4 trillion — comprising ₦2 trillion for 2024 obligations and ₦1.9 trillion in legacy debts — a shortfall they said threatened operational sustainability.
