By Erewunmi Peace

President Bola Ahmed Tinubu has approved a ₦4 trillion bond programme aimed at settling verified debts owed to power generation companies (GenCos) and gas suppliers, marking a significant step toward stabilizing Nigeria’s electricity sector.

The Minister of Power, Adebayo Adelabu, confirmed the development, explaining that the initiative forms part of the Federal Government’s plan to restore investor confidence and improve liquidity across the power value chain. The ₦4 trillion bond will be used to refinance long-standing obligations and strengthen the operations of both public and private players within the sector.

According to Adelabu, Nigeria’s power sector has also recorded its highest-ever revenue performance, with collections hitting ₦1.7 trillion in 2024 — a 70% increase compared to the previous year. He projected that the sector’s earnings could exceed ₦2 trillion by the end of 2025, signaling steady progress despite lingering supply challenges.

“The bond approval demonstrates President Tinubu’s commitment to ending decades of financial strain in the electricity sector,” Adelabu stated. “It will also encourage more private sector investment and improve service delivery to Nigerians.”

The power minister emphasized that only verified debts will be cleared under the plan to ensure transparency and accountability. The move is expected to improve cash flow for GenCos and gas suppliers, thereby boosting generation capacity and reducing frequent outages.

Analysts say the policy, if well implemented, could mark a turning point for Nigeria’s electricity industry, which has struggled for years with debt accumulation, liquidity shortages, and weak infrastructure.