ABUJA – AS part efforts to revitalize Nigeria’s power sector, the Federal Government on Tuesday announced it has finalized a comprehensive plan to deploy ₦4 trillion in government-backed bonds aimed at settling verified arrears owed to power generation companies (GenCos) and gas suppliers. The move comes after years of unresolved debts, which have hampered industry stability, deterred investment, and weakened the financial health of power utilities. Mrs. Olu Verheijen, the Special Adviser to the President on Energy, confirmed the breakthrough in a statement issued on Tuesday in Abuja. She revealed that these bonds are part of an initiative approved by President Bola Tinubu and the Federal Executive Council, designed to address deep-rooted structural challenges in Nigeria’s power sector and foster an environment conducive to massive private sector investment. The agreement was reached during a high-level meeting attended by key government officials, including the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Minister of Power, Chief Bayo Adelabu; and Mrs. Verheijen. The meeting focused on reviewing and finalizing settlement modalities, with a consensus to engage in bilateral negotiations aimed at crafting comprehensive settlement agreements that are sustainable amid Nigeria’s fiscal realities and the financial constraints faced by GenCos. Mrs. Verheijen emphasized that this intervention marks the largest-scale debt resolution effort in over a decade. It seeks to eliminate legacy debts that have historically limited the sector’s growth, improved the bottom lines of utility companies, and enhanced 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,” Murray stated. Furthermore, this initiative aligns with President Tinubu’s strategic vision of modernizing the electricity infrastructure—improving grid systems, expanding distribution networks, and scaling embedded generation—aimed at creating a favorable environment for sustainable growth and private investment. The milestone underscores Nigeria’s commitment to tackling structural bottlenecks, fostering a resilient power sector, and unlocking economic potential through robust government-private sector collaboration.
