President Bola Ahmed Tinubu has approved a ₦4 trillion bond programme to clear verified debts owed to power generation companies (GenCos) and gas suppliers, in a move to resolve longstanding liquidity challenges in Nigeria’s power sector.
Lens News gathered that the approval was disclosed by the The Minister of Power, Adebayo Adelabu, who said that the bond issuance aims to settle obligations that have accrued over several years and threaten the sustainability of generation assets. The government clarified that only debts validated through a rigorous audit and verification process will be included in the bond.
Officials explained that claims by GenCos dating back to 2015 through 2023 have accumulated to about ₦4 trillion. However, only a portion of those claims has been verified to date, prompting caution in full disbursement until verification is complete.
Some GenCos claim they were not fully briefed on the details of the bond plan. The Minister urged patience and cooperation from industry stakeholders while the audit process is underway.
Observers note the bond scheme aligns with broader efforts to stabilise Nigeria’s electricity infrastructure and restore investor confidence. Particularly, recent reporting by Reuters confirms the government’s debt refinancing plan for the power sector under Tinubu’s approval.
If fully implemented, the bond approval could help unlock blocked capacity, improve cash flows in the sector, and reduce the systemic risk of generation plants being forced offline due to financial distress.
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