President Tinubu approves ₦4 trillion Nigeria power sector bond initiative to address liquidity crisis and GENCO debt claims dating back to 2015

Nigeria Power Sector Bond Initiative has received a major boost as President Bola Tinubu granted anticipatory approval for a ₦4 trillion bond to resolve the persistent liquidity shortfall plaguing the country’s electricity industry.

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The announcement came after a high-level meeting at the Presidential Villa with representatives of power generation companies (GENCOs), led by Col. Sani Bello (rtd).

During the session, President Tinubu reaffirmed his government’s commitment to financial fairness, stating that legacy debts must undergo rigorous verification and validation.

“I accept the assets and liabilities of my predecessors,” Tinubu said, “but that acceptance must be on credible grounds.”

Special Adviser on Energy, Mrs. Olu Verheijen, disclosed that Nigeria’s power sector is currently burdened with a verified debt exposure of ₦4 trillion, mostly from tariff and market shortfalls accumulated since 2015.

Of this amount, ₦1.8 trillion has already been validated by the Nigerian Bulk Electricity Trading Company (NBET).

While noting that the **Nigeria Power Sector Bond Initiative** has received anticipatory approval, Verheijen stressed that actual disbursement will depend on final negotiations and confirmed debts.

Minister of Power, Chief Adebayo Adelabu, hailed Tinubu’s bold intervention. He highlighted reforms including the Electricity Act, 2023, and a 70% rise in sector revenue—from ₦1 trillion in 2023 to ₦1.7 trillion in 2024—which has cut subsidy obligations by over ₦700 billion.

The Tinubu administration also attracted \$2 billion in private investment and recorded milestones such as peak daily energy delivery of 120,370 MWh, and over 700MW of new transmission capacity under the Presidential Power Initiative.

Despite progress, Adelabu warned that the liquidity crisis remains a threat to sector stability. He called for the urgent release of funds under the Nigeria Power Sector Bond Initiative to maintain momentum and avoid setbacks.

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With transparency, structured financing, and policy backing, this bond program marks a critical turning point in stabilizing Nigeria’s electricity sector and securing its future.