The Traffic

President Tinubu Approves ₦4 Trillion Power Sector Bond to Solve Nigeria’s Electricity Crisis

In a bold move to rescue Nigeria’s power sector from persistent liquidity challenges, President Bola Ahmed Tinubu, GCFR, has granted anticipatory approval for a ₦4 trillion bond programme aimed at clearing verified debts owed to power generation companies (GENCOs).

The massive bond, approved in July 2025, will address outstanding liabilities accumulated between 2015 and 2023, which have crippled electricity generation and investor confidence in the sector.

Out of the ₦4 trillion total, ₦1.8 trillion has already been validated by the Nigerian Bulk Electricity Trading Company (NBET). An additional ₦200 billion comes from unpaid subsidy shortfalls to GENCOs. The remaining claims are currently undergoing a rigorous audit and verification process to ensure only legitimate debts are settled.

President Tinubu, while urging stakeholders in the power and financial sectors to exercise patience, emphasized transparency, saying only verified obligations will be honoured. He appealed to Nigerian banks and creditors to suspend harsh recovery measures such as asset foreclosures, advising them to “sharpen your pencils, but keep an eraser handy.”

The Minister of Power, Chief Adebayo Adelabu, outlined ongoing reforms under the Tinubu administration, including the implementation of the Electricity Act 2023, decentralisation of market operations, and the Presidential Metering Initiative, which has delivered over 300,000 smart meters to consumers.

He also revealed that the sector’s revenue improved significantly, rising from ₦1 trillion in 2023 to ₦1.7 trillion in 2024, under the current administration’s reforms.

This ₦4 trillion bond initiative, championed by President Tinubu, is expected to reinvigorate the power sector, restore investor confidence, stabilize grid operations, and ultimately deliver more reliable electricity to Nigerians.