In a major step to revive Nigeria’s beleaguered power industry, President Bola Tinubu has authorized a N4 trillion bond aimed at wiping out outstanding obligations to electricity generators and fuel providers, according to the nation’s Power Minister.
Adebayo Adelabu shared the development during a panel discussion on “Uninterrupted Power: The Industrial Imperative,” hosted by the Nigeria Economic Summit Group in the capital. The initiative aligns with the administration’s Renewed Hope strategy, which seeks to transform the electricity landscape into a more resilient and profit-oriented system.
Adelabu described the bond as a cornerstone of a wider fiscal rescue package, tackling accumulated financial burdens that have long stifled funding and cash flow throughout the power supply network.
“The President has endorsed a N4 trillion bond to resolve confirmed dues for generators and fuel providers,” he stated. “This is complemented by plans for a focused subsidy system to shield low-income families while paving the way for complete market liberalization and a thriving sector.”
The official outlined a holistic strategy to overhaul the industry, encompassing regulatory updates, infrastructural upgrades, a shift to greener sources, and greater emphasis on domestic involvement. These measures, he noted, are already showing dividends through adjustments in pricing mechanisms that promote fairer rates for certain users, leading to steadier supply and lower expenses for manufacturing operations.
Adelabu reported a robust uptick in earnings, with the sector’s income surging 70 percent to N1.7 trillion last year and projected to surpass N2 trillion this year.
Clearing these arrears, he added, will ease pressures on producers and suppliers, whose delayed payments have severely limited output and day-to-day functions. He reaffirmed the administration’s dedication to a dependable energy ecosystem, calling on industry players to back these changes and partner with international allies to hasten progress toward a robust, export-ready power framework.
Delving into upgrades, Adelabu spotlighted the Presidential Power Initiative as a key driver for grid enhancements. In its initial preparatory stage, the program bolstered network strength and dependability, delivering more than 700 megawatts of extra transmission power.
For the main rollout, agreements are in place with global firms like Siemens Energy, CMEC, Elswedy Electric, and Power China, with funding deals progressing to enable execution. This phase targets an injection of 7,000 megawatts into the system.
Complementing these efforts, the government is revitalizing older National Integrated Power Project facilities to release around 345 megawatts, while the 700-megawatt Zungeru hydroelectric facility has been seamlessly linked to the national lines.
