The Federal Government has concluded plans to issue a ₦4 trillion bond to offset verified debts owed to power Generation Companies (GenCos) and gas suppliers, a major financial intervention aimed at stabilising Nigeria’s troubled electricity sector.
The Special Adviser to the President on Energy, Mrs. Olu Verheijen, disclosed this in a statement in Abuja.
The announcement followed a high-level meeting between senior government officials and top executives of the GenCos to agree on modalities for the settlement of the long-standing arrears.
The statement, signed by Senan Murray, Head of Media and Communications in the Office of the Special Adviser and obtained by The News Chronicle, said the session was attended by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the Minister of Power, Chief Bayo Adelabu, and Verheijen herself.
“The meeting concluded with a consensus on the way forward, which includes conducting bilateral negotiations to finalise full and final settlement agreements that balance fiscal realities with the financial constraints of the GenCos.
This intervention — the largest in over a decade — addresses a legacy debt overhang that has constrained investment, weakened utility balance sheets, and hindered reliable power delivery across the country,” the statement read.
According to Murray, the move represents a significant milestone in the government’s efforts to revive investor confidence and restore financial health within the electricity market.
“This is a major step by the federal government toward restoring financial stability and investor confidence in the electricity market,” he said.
He added that the bond rollout aligns with a broader initiative approved by President Bola Tinubu and the Federal Executive Council to remove structural barriers and create a fertile ground for large-scale private investment and sustainable economic growth.
During the meeting, Verheijen explained that the administration’s focus is to create the right climate for investment by upgrading the power grid, improving distribution efficiency, and expanding embedded generation capacity.
She further noted that these efforts will help bridge the metering gap, ensure tariff alignment with actual costs, strengthen targeted subsidies for vulnerable groups, and rebuild trust in the regulatory framework.
“The sector is shifting from crisis response to sustained delivery and building the confidence needed to attract large-scale private capital,” she said.
Speaking at the event, Edun emphasised that the reforms go beyond addressing liquidity issues.
“It would help in rebuilding the fundamentals, so that Nigeria’s power sector works for investors, for citizens, and for the next generation.
This is how we create the enabling conditions for sustained private investment and transform reliable power into a catalyst for economic growth,” he stated.
He added that ongoing initiatives to expand renewable energy, utilise domestic gas as a transition fuel, and strengthen local capacity would ensure Nigeria achieves both energy security and sovereignty.
“Complementary efforts to scale renewable energy, leverage domestic gas as a transition fuel, and build local technical and institutional capacity will position Nigeria not just for energy security, but for energy sovereignty, creating one of Africa’s most attractive power markets,” Edun said.
