Power Shake-Up! Tinubu Approves ₦4trn Clearance As Sector Records Highest-Ever Revenue

President Bola Tinubu has approved the issuance of a ₦4 trillion bond to offset verified debts owed to power generation companies (GenCos) and gas suppliers, in a decisive move to stabilise Nigeria’s electricity market and restore investor confidence.....KINDLY READ THE FULL STORY HERE▶

Minister of Power, Adebayo Adelabu, made this known in Abuja at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organised by the Nigeria Economic Summit Group (NESG).

Adelabu explained that the bond approval forms part of the Federal Government’s Renewed Hope Agenda, designed to resolve the liquidity crisis that has long hampered investment across the power sector.

“To stabilise the market, Mr President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts,” the minister said.

He added that alongside the debt clearance, the government is designing a targeted subsidy framework to shield vulnerable households while paving the way for a fully commercialised and sustainable electricity industry.

Tariff Reforms Driving Growth

Adelabu revealed that tariff reforms are already producing results, particularly through cost-reflective tariffs for select customer groups.

“Industry revenue rose by 70 per cent to ₦1.7 trillion in 2024, compared to the previous year,” he disclosed. “We expect revenues to exceed ₦2 trillion in 2025 as reforms deepen.”

According to him, this performance reflects improved efficiency and rising investor confidence—two critical ingredients for a self-sustaining electricity market.

The minister stressed that the debt settlement would bring long-awaited relief to GenCos and gas suppliers burdened by years of unpaid invoices, unlocking liquidity, expanding generation, and boosting efficiency.

Infrastructure Push and Grid Expansion

Adelabu also highlighted the Federal Government’s ongoing investments to modernise Nigeria’s power infrastructure. He pointed to the Presidential Power Initiative (PPI) as a key driver of transmission and generation upgrades.

“Under Phase Zero of the PPI, we enhanced grid stability and added over 700 megawatts of transmission capacity,” he noted. “Phase One, with contracts signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, will add 7,000 MW of operational capacity.”

In addition, he confirmed that the 700 MW Zungeru Hydropower Plant has been successfully integrated into the national grid, while the rehabilitation of National Integrated Power Projects (NIPPs) will unlock another 345 MW.

Investor Confidence and Industrial Growth

Adelabu urged stakeholders, investors, and development partners to back the Federal Government’s reform drive, stressing that collaboration is vital to Nigeria’s industrialisation agenda.

“This administration is committed to building a power sector that is sustainable, commercially viable, and capable of supporting Nigeria’s industrial growth,” he said.

He further assured that Tinubu’s strategy is focused on restoring investor trust, strengthening regulation, and delivering uninterrupted power supply to Nigerian homes and industries.