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President Tinubu’s N4 trillion bond approval aims to tackle Nigeria’s power sector debt crisis, with stakeholders like Tony Elumelu urging urgent reforms.
President Bola Ahmed Tinubu has approved an ambitious N4 trillion bond programme to address the mounting debts and liquidity challenges crippling Nigeria’s power sector.
This announcement came during a high-level meeting with the Association of Power Generation Companies (GENCOs), led by Col. Sani Bello (rtd), at the Presidential Villa in Abuja.
Special Adviser on Energy, Mrs. Olu Verheijen, confirmed that the bond approval is designed to clear part of the government’s debt to GENCOs, which is estimated at around N4 trillion between 2015 and 2023. According to her, the Nigerian Bulk Electricity Trading Company (NBET) has verified N1.8 trillion of this debt so far.
Tinubu acknowledged inheriting these historic liabilities from previous administrations but assured stakeholders of his government’s commitment to resolving them.
He stressed the importance of transparency, saying, “I accept the assets and liabilities of my predecessors, but this acceptance must be on credible grounds. We must ensure verifiability and authenticity.”
The President called on GENCOs and financial institutions to exercise patience as audit and legal teams validate all outstanding claims.
He also emphasized his administration’s drive to transition to a market-driven electricity sector, while tackling long-neglected infrastructure and operational challenges.
Power Sector Reforms and Investments
Minister of Power, Chief Adebayo Adelabu, praised Tinubu’s leadership, highlighting reforms such as the Electricity Act, 2023, which decentralizes the electricity market.
He noted that over $2 billion in private capital has been attracted to boost electricity access, with the sector’s annual revenue increasing by 70%—from N1 trillion in 2023 to N1.7 trillion in 2024. This growth has helped reduce government subsidies by more than N700 billion.
Adelabu reported significant progress in power generation, with installed capacity rising to 14,000 MW and a record daily energy delivery of 120,370 MWh achieved in March 2025.
He also revealed that there has been no national grid collapse in 2025, attributing this success to the Presidential Power Initiative, which has added over 700MW of transmission capacity.
Business Leaders Sound Alarm
Despite these gains, key stakeholders warned of an impending crisis if debts remain unresolved.
Business magnate Tony Elumelu stressed the urgency of liquidity support, warning that GENCOs are on the brink of financial collapse due to unpaid debts. “Power is critical to unlocking Nigeria’s potential. Without urgent intervention, the system risks grinding to a halt,” Elumelu said.
Kola Adesina, another industry leader, echoed these concerns, highlighting gas supply issues that are affecting generation plants.
He proposed unlocking 800 million cubic feet of gas through Nigeria LNG (NLNG) to improve power generation capacity.
The meeting also saw the attendance of top government officials, including the Chief of Staff, Femi Gbajabiamila; Minister of Finance, Wale Edun; and the Minister of Information, Mohammed Idris.
Source: Vanguard
