₦airaland Forum

President Bola Tinubu has approved a N4tn bond to clear verified debts owed to power generation companies and gas suppliers as part of efforts to stabilise Nigeria’s electricity market and restore confidence in the sector.

The Minister of Power, Adebayo Adelabu, made the disclosure in Abuja at the Expert Forum on ‘Uninterrupted Power: The Industrial Imperative’ organised by the Nigeria Economic Summit Group, where he outlined ongoing reforms under the Federal Government’s Renewed Hope Agenda to make the power sector sustainable and commercially viable.

According to him, the bond approval forms part of a broader financial stabilisation plan designed to address legacy liabilities that have hindered investment and liquidity across the electricity value chain.

“To stabilise the market, Mr President has approved a N4tn bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and a viable industry.”

He explained that the Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the sector for “sustainability, efficiency, and growth”, spanning legislation, policy reform, infrastructure development, energy transition, and local content expansion.

The minister further stated that the government’s tariff policy reforms have begun to yield positive results, noting that through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries.

He revealed that sector revenue had grown substantially in the last year, adding, “Industry revenue has increased by 70 per cent to N1.7tn in 2024 compared to the previous year, and the revenue is expected to exceed N2tn for 2025.”

While highlighting the government’s commitment to ensuring a stable electricity market, he emphasised that the debt clearance would provide relief to GenCos and gas suppliers whose unpaid invoices have long crippled generation capacity and operational efficiency.

The minister also assured stakeholders that ongoing efforts in infrastructure development, including the Presidential Power Initiative, are targeted at expanding generation and transmission capacity across the country.

He urged participants to support the Federal Government’s ongoing reforms, expressing optimism that collaboration with the private sector and development partners will accelerate Nigeria’s journey toward a stable, reliable, and industrially competitive power sector.

In the area of infrastructure development, Adelabu explained that the Federal Government had introduced targeted national programmes aimed at accelerating the viability, expansion, and modernisation of the national grid.

“Under the phase zero of the Presidential Power Initiative, we enhanced transmission capacity, grid stability, and overall system reliability, with over 700 megawatts of additional transmission capacity already achieved.

Under Presidential Power Initiative Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China. Financing arrangements are underway to support implementation.

Phase one is planned to add 7000 MW of operational capacity to the grid,” he said.

In parallel to the grid expansion, Adelabu stressed that generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345 MW, alongside the successful integration of the 700 MW Zungeru Hydropower Plant into the grid.

https://punchng.com/tinubu-approves-n4tn-bond-to-clear-gencos-debts-power-minister/


Previously:

Pay GenCos to avoid power sector collapse, Elumelu tells FG

https://www.premiumtimesng.com/news/more-news/786948-pay-gencos-to-avoid-power-sector-collapse-elumelu-tells-fg.html

Tinubu Meets With GenCos Chairmen, Pledges To Resolve Debt Claims

https://www.channelstv.com/2025/07/25/tinubu-meets-with-gencos-chairmen-pledges-to-resolve-debt-claims/

Rotten country. This minister of power seems to be an accomplice with the power companies that are now fleecing Nigeria dry with this electricity subsidy scam sort of. Both citizens and the country now pay for what they don't receive. Politicians keep spending millions of dollars to buy metres every year but those meters never reaches electricity consumers. Multifaceted crime perpetuated against the Nigerian people by the electricity companies and the ministry of power led by the minister of power. If Nigeria was china, this man and the last minister appointed by buhari should be in jail right now for corruption. Where is the money wasted on Siemens deal? That deal has been abandoned for a china deal and in years to come Nigeria will pay fines in billions after arbitrage court sittings in Europe for the monkey behaviour of tinubu and the minister of power that abandoned kyaris Siemens deal for an audio china deal in the power distribution sector

How does the bond of a thing work? Make I no pretend say I know wetin e mean.

Ruke1991:
Rotten country. This minister of power seems to be an accomplice with the power companies that are now fleecing Nigeria dry with this electricity subsidy scam sort of. Both citizens and the country now pay for what they don't receive. Politicians keep spending millions of dollars to buy metres every year but those meters never reaches electricity consumers. Multifaceted crime perpetuated against the Nigerian people by the electricity companies and the ministry of power led by the minister of power. If Nigeria was china, this man and the last minister appointed by buhari should be in jail right now for corruption. Where is the money wasted on Siemens deal? That deal has been abandoned for a china deal and in years to come Nigeria will pay fines in billions after arbitrage court sittings in Europe for the monkey behaviour of tinubu and the minister of power that abandoned kyaris Siemens deal for an audio china deal in the power distribution sector

Is there light in your area or not? All I know is they must give us light not candles 🕯️🕯️🕯️

The electricity fraud continues , this is how your faves are able to buy jets and banks all year long 😂😂😂😂.

Mark my word when this electricity subsidy scam blows open one day many will go to jail

Much I do about reforms. This looks like financing the business elites

Wailers above are saying the legacy debts in the power sector that has long bedeviled the sector since its privatization should be left uncleared. When it comes to wailing, just leave it to wailers, but when it comes to understanding, it is zero.

With all these clearing of electricity debt, we should be expecting more improvement in the electricity in the country.

The states need to start partnering with foreign investors

Ruke1991:
Rotten country. This minister of power seems to be an accomplice with the power companies that are now fleecing Nigeria dry with this electricity subsidy scam sort of. Both citizens and the country now pay for what they don't receive. Politicians keep spending millions of dollars to buy metres every year but those meters never reaches electricity consumers. Multifaceted crime perpetuated against the Nigerian people by the electricity companies and the ministry of power led by the minister of power. If Nigeria was china, this man and the last minister appointed by buhari should be in jail right now for corruption. Where is the money wasted on Siemens deal? That deal has been abandoned for a china deal and in years to come Nigeria will pay fines in billions after arbitrage court sittings in Europe for the monkey behaviour of tinubu and the minister of power that abandoned kyaris Siemens deal for an audio china deal in the power distribution sector

With phone and free data bonus, any ignorant person can sit in his/her room and type trash on the internet. I hope foreigners who frequent this forum won't think this is how low we all think in this country.

zero8zero:
With phone and free data bonus, any ignorant person can sit in his/her room and type trash on the internet. I hope foreigners who frequent this forum won't think this is how low we all think in this country.

the problem with eggheads
Produce your facts here since you are proving you.kmow something about the Siemens deal. You ended up saying nothing

Is there anything still remaining in that national Treasury? During Goodluck era na billions but this

Borrow from Peter to pay Paul....oya APC online miscreants over to you.

kokoA:
How does the bond of a thing work? Make I no pretend say I know wetin e mean.

Bond and treasury bid are forms of govt borrowing from the people instead of borrowing from the international bodies or banks. A treasury bill maturity period bill is shorter. Typically, 3 months to 1 year. A bond maturity period is typically 4 to 10 years. Bonds have higher interest rates and govt only pays back your money after maturity period. But interest may come at the end of before the end of maturity period. Debt management office and CBN coordinates this borrowing program. If you are interested in borrowing govt your money, simply walk to your bank and apply, the money will be deducted straight from your bank account

How many are we in Nigeria self...? Just 210 million.. and President Tinubu is paying off 4 trillion to pay Genco... Are this men maaada..?

How as gencos help the poor masses... In the last 16yrs...?

Freshtruth:
Is there anything still remaining in that national Treasury? During Goodluck era na billions but this

Which billions remain in the national Treasury during Jonathan era? Goodluck that was borrowing billions of dollars to pay salaries and to defend naira in the forex market.

fitinwell:
How many are we in Nigeria self...? Just 210 million.. and President Tinubu is paying off 4 trillion to pay Genco... Are this men maaada..?

How as gencos help the poor masses... In the last 16yrs...?

Wailers must definitely wail, damned if u do, damned if u don’t.

Mattswaggz:
Borrow from Peter to pay Paul....oya APC online miscreants over to you.

Both Peter and Paul P Square music career has collapsed. Sorry for both of them

Finally, the right step in the right direction. This was long overdue. Gradually, we're getting it right.

Ruke1991:
the problem with eggheads
Produce your facts here since you are proving you.kmow something about the Siemens deal. You ended up saying nothing

Chai, I don’t know why this news pained u the way it did, u have gone hysteric?

Every day Tinubu just dey add fresh pepper to your food, very soon the pepper no go fit make una chop the beans again.

Good action.. by the way Power has really improved and stabilized

zero8zero:
Wailers above are saying the legacy debts in the power sector that has long bedeviled the sector since its privatization should be left uncleared. When it comes to wailing, just leave it to wailers, but when it comes to understanding, it is zero.

Lol.. i thought i was the only one that noticed the ignorant comments..

This politicians thought the are smart, he put solar all over aso rock so that escobar will not complain or know what is going on and leaves Nigerians in total darkness. 3days now no light, this politicians are really making it hard for amaechi laptop boys

zero8zero:
With phone and free data bonus, any ignorant person can sit in his/her room and type trash on the internet. I hope foreigners who frequent this forum won't think this is how low we all think in this country.

Do you live your life for foreigners' validation? Who are they? Is everything perfect in their own clime?

"Phase one is planned to add 7000 MW of operational capacity to the grid,” he said.

The phrase here is music to the ears.

However, I would suggest tariffs for the other bands should be increased, closer to cost reflective prices.

This is to reduce the need for the government to borrow money for electrical subsidies.

Ruke1991:
Rotten country. This minister of power seems to be an accomplice with the power companies that are now fleecing Nigeria dry with this electricity subsidy scam sort of. Both citizens and the country now pay for what they don't receive. Politicians keep spending millions of dollars to buy metres every year but those meters never reaches electricity consumers. Multifaceted crime perpetuated against the Nigerian people by the electricity companies and the ministry of power led by the minister of power. If Nigeria was china, this man and the last minister appointed by buhari should be in jail right now for corruption. Where is the money wasted on Siemens deal? That deal has been abandoned for a china deal and in years to come Nigeria will pay fines in billions after arbitrage court sittings in Europe for the monkey behaviour of tinubu and the minister of power that abandoned kyaris Siemens deal for an audio china deal in the power distribution sector

"A cynic is someone who knows the price of everything but the value of nothing"- Oscar Wilde

financial bond is a debt instrument representing a loan from an investor (the bondholder) to a borrower, typically a government or a corporation. In exchange for lending money, the investor receives periodic interest payments and the return of the principal amount (face value) on a specific maturity date. Bonds are issued to raise capital for various purposes, such as government infrastructure projects et

kokoA:
How does the bond of a thing work? Make I no pretend say I know wetin e mean.

kokoA:
How does the bond of a thing work? Make I no pretend say I know wetin e mean.

Very decent of you to ask. At least you are seeking knowledge rather than wallowing in ignorance proudly, to the point of insulting others, as many above this post have done.

Bonds are like a promissory note but on a larger scale. For example, I owe you five million naira you need immediately I cannot pay but expect good income in future.

I can raise the 5 million from others promising to pay them back over time , with interests, meaning I get the 5 million as a lump sum to pay you immediately and then pay those I issued the promissory notes to over a set period like 3 years, with the agreed interest.

You're happy, I'm happy and others, who will gain interests for lending me the money to pay you, are happy.

So per what this article is saying , and in theory, we can assume you are the Distribution companies government owe trillions to.

Government need to clear the debt incentivising you to work more efficiently to provide reliable electricity for Nigerians.

Paying you also means the deregulated power sector now looks much healthier and open to foreign and local investment who would not have invested in a debt-ridden Nigerian power sector.

The Goverment simply goes to the bond market and offer promissory notes to Nigerians, locked in over a set period of time, like 18 months to 48 months, they will earn interest on.

Subscribers will quickly snap up all bonds available to give Givernment the trillion to pay you and get the chain moving.

A brilliant move by a Government trying really hard to fix many sectors using innovative ways to address paucity of funds to pay for stupendous debt in many sector previous government accumulated.

Some of us also know, historically, Tinubu was first to innovatively use bonds to raise money to spend on infrastructural development in Lagos, as Governor when his fellow Governors where going to sit outside Aso Rock with begging bowls.

Please never listen to those who are toxic, bitter and hollow shells walking around pretending to be human being.

Like my mum always says olorun o ni je ki a padé enì tí esu ti pari aiye é. May god not let us cross path with human beings the devil has destroyed meaning they have nothing to live for and are just looking for who to destroy and makes as miserable and as hopeless as they are.

zero8zero:
With phone and free data bonus, any ignorant person can sit in his/her room and type trash on the internet. I hope foreigners who frequent this forum won't think this is how low we all think in this country.

I was shocked at his rage.

I that I live in Band E catchment area should be the one complaining the most, but I must agree, power supply has improved!

They are adding 7,000MW to the transmission capacity. What they are adding is even higher than what is presently on ground.

Power supply would probably have improved much higher but the cost of the subsidies is a big problem.

I am certain Tinubu will get rid of them if he wins a second term.

Ruke1991:
Bond and treasury bid are forms of govt borrowing from the people instead of borrowing from the international bodies or banks. A treasury bill maturity period bill is shorter. Typically, 3 months to 1 year. A bond maturity period is typically 4 to 10 years. Bonds have higher interest rates and govt only pays back your money after maturity period. But interest may come at the end of before the end of maturity period. Debt management office and CBN coordinates this borrowing program. If you are interested in borrowing govt your money, simply walk to your bank and apply, the money will be deducted straight from your bank account

Thank you for this explanation. Seun complete your characters by yourself.

grandstar:
"A cynic is someone who knows the price of everything but the value of nothing"- Oscar Wilde

Absolutely. I was talking about his ilk with a section of my post above quoted below. How this development, by any stretch of the imagination, can be viewed a bad thing , assuming one fully understanding what the article states, is simply beyond me.

One thing to be cynically, another entirely to be a toxic and miserable sod nothing, not even the most positive development, pleases.

Please never listen to those who are toxic, bitter and hollow shells walking around pretending to be human being.

Like my mum always says olorun o ni je ki a padé enì tí esu ti pari aiye é. May god not let us cross path with human beings the devil has destroyed meaning they have nothing to live for and are just looking for who to destroy and makes as miserable and as hopeless as they are.

Pakute:
https://punchng.com/tinubu-approves-n4tn-bond-to-clear-gencos-debts-power-minister/


Previously:

I Hope National grid won’t be collapsing anymore and we should have maximum power supply a country as big as nigeria supposed to have stabilize the electricity supply rather than subjecting millions of Nigerians into buy fuel to run generators for home and business places imagine if the amount to buy the fuel being added to the electricity bills and the discos company supply us 24hrs? Those of una weh Dey compare country nor fit compare us now but when it comes to buying things in high prices thru want to compare somebody earning 42 dollars minimum wage to those that earn a thousand abd above make una fear God oo