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Federal Government to deploy N4 trillion in government-backed bonds to clear verified debts owed to power generation companies (GenCos) and gas suppliers.
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Debt resolution initiative described as the largest-scale intervention in over a decade.
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Plan aims to restore investor confidence, improve power sector stability, and attract private investment.
The Federal Government has confirmed a comprehensive plan to use N4 trillion in bonds to settle longstanding debts owed to GenCos and gas suppliers, a move officials say will strengthen the electricity sector and unlock private investment.
The announcement was made by Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, in a statement released on Tuesday.
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Government Strategy and Meetings
The initiative received approval from President Tinubu and the Federal Executive Council.
A high-level meeting, attended by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Minister of Power, Chief Bayo Adelabu, finalised the modalities for debt settlement.
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The government plans to conduct bilateral negotiations with GenCos, ensuring that settlement agreements are fiscally sustainable and aligned with Nigeria’s economic realities.
Objectives and Sector Implications
Eliminate legacy debts that have constrained growth and operational efficiency in the power sector.
Enhance financial stability of GenCos and utility companies.
Improve electricity supply reliability nationwide, aligning with President Tinubu’s vision for modernised infrastructure, expanded grid systems, and embedded generation.
Foster an investment-friendly environment for private sector players.
