The Federal Government has announced a landmark plan to deploy N4 trillion in government-backed bonds to settle verified arrears owed to power generation companies (GenCos) and gas suppliers across the country.
This was disclosed in a statement on Tuesday by Mrs. Olu Verheijen, Special Adviser to the President on Energy, who said the initiative — approved by President Bola Tinubu and the Federal Executive Council (FEC) — is designed to tackle deep-rooted structural challenges in Nigeria’s power sector and attract major private sector investment.
According to Verheijen, the decision followed a high-level meeting attended by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Power, Chief Bayo Adelabu, where stakeholders reviewed and finalised modalities for the debt settlement.
She explained that the consensus reached involves bilateral negotiations to design a sustainable payment framework that aligns with Nigeria’s fiscal realities and the financial conditions of GenCos.
Verheijen described the initiative as “the largest-scale debt resolution effort in over a decade,” noting that it aims to clear long-standing obligations that have hindered growth, strengthen the financial health of utility companies, and improve the reliability of power supply nationwide.
“This is a major step by the Federal Government towards restoring financial stability and investor confidence within Nigeria’s electricity market,” the statement read.
The move also aligns with President Tinubu’s broader vision of modernising Nigeria’s electricity infrastructure through grid upgrades, distribution expansion, and embedded generation — all aimed at creating a sustainable and investment-friendly power sector.
The announcement comes months after GenCos issued a warning in April 2025, threatening to shut down operations over N4 trillion in unpaid legacy debts owed by the government.
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